Because you can deduct interest payments, it may be more tax efficient to buy a property with a mortgage rather than in cash.

However, many accounts deduct interest for early withdrawals and easy-access accounts usually offer lower interest rates.

Any other business that borrows to fund its equipment can deduct interest from its taxable income, so why not landlords?

A basic-rate (20%) taxpayer will pay no extra tax on the property income, but 'taxable profit' could be higher because they can't deduct interest.

But homes used in businesses as a landlord who owns a rental residential property can deduct interest as any other reasonable business expense.