I have always been in the habit of asking for these in the past. I have always worked out the accruals rental profit and deducted the interest paid as per the annual tax certificate of mortgage interest paid for the tax year.
However, having had some difficulty in obtaining these for a few clients recently, I have just paused for thought.
If the rental accounts are prepared on a cash basis then there appears to be a cap of just £500 per annum for interest paid etc. (ITTOIA 2005, ss 51A, 57B)
For accruals accounting, on the other hand, it would appear slightly incorrect to deduct the mortgage interest figure as per the annual tax certificate because that shows interest PAID during the year rather than interest payable ACCRUING over the tax year. Or is this merely worrying over trifles?
Or are you disecting the two annual calendar year (up to 31 December) mortgage interest statements which the tax year falls into?
What are the rest of you doing to work out the interest/finance charges for accruals accounts for landlords?
It does appear that on the odd occasion the annual mortgage interest statements contain certain finance charges which do not appear on the tax year certificates of interest paid (because these merely show the interest element only of all finance costs).
And has HMRC ever asked anyone to produce these tax certificates on enquiry.