The Income Tax (Interest Relief) Regulations 1982
These regulations supplement sections 26 and 28 and Schedule 7 to the Finance Act 1982 which provide for a new scheme for giving tax relief on payments of mortgage interest. Form April 1983, or in some cases earlier, a person who pays certain categories of loan interest on which tax relief is due will normally be entitled to deduct and retain out of it a sum equal to income tax at the basic rate and the Inland Revenue will pay to the lender the amount of the deduction made.