My question is a little complicated. As tax credit claimants, can we still claim the relief of finance costs of the mortgage interest payments and add it to our expenses? See here. This link seems to say the rules do not apply to tax credit claimants. Can someone please advise, as I’m really confused now?  

Arthur Weller replies:  

As explained in HMRC’s Tax Credits Technical manual at TCTM04006 (see https://tinyurl.com/3a2397xh), when calculating income for the purposes of tax credits, a person will still be able to deduct 100% of their finance costs when calculating their allowable expenses for property income. Even though when calculating income for income tax purposes, finance (e.g., mortgage) costs are not deductible and are only allowed as a 'tax reducer' when calculating the final tax liability.