How does Section 24 mortgage interest work in Making Tax Digital?

How does Section 24 mortgage interest work in Making Tax Digital? Under Making Tax Digital, mortgage interest goes in its own record and is sent separately in each quarterly update. It is not deducted as an expense: it earns a tax reduction of 20% for 2026-27, then 22% from 2027-28. No. Residential finance costs such as mortgage interest must be kept as a separate digital record and sent separately from other expenses in each quarterly update. No. GOV.UK says the full mortgage payment is not allowable. Only the interest counts, and for an individual landlord it gives a tax reduction rather than an expense. The basic rate: 20% for 2026-27. From 2027-28 property income has its own rates, 22%, 42% and 47% in England and Northern Ireland, and the reduction is given at the 22% property basic rate. Wales and Scotland can set their own property rates. Read the full answer, with every source, at rightotax.co.uk.