From 6 April 2025, interest for businesses operated by individuals will cease to be a deduction and relief will instead be given as a 20% tax credit from the individual’s tax liability.

A number of MPs, led by Peter Aldous, have asked for a carve-out to allow certain exemptions to the new FHL rules, and also called for a consultation on the changes, which were announced by the Chancellor at the Budget last month.

Aldous said: ‘In certain parts of the country there might quite well be benefits but I argue that it is a quite blunt instrument and could have unintended consequences.

‘Concern is widespread – the Treasury should consider a list of exemptions, for example if a property cannot be residential, for example if it is on a farm.

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