Hi I have a rental property in negative equity. I have recently been migrated from tax credits/ to Universal Credit. I am aware of the way UC sets of threshold of 6 - 16 K capital after mortgage / loans etc deducted, but am a bit confused by what happens with the rental income. In tax credits this was added to my other income. I gather in UC it is added to the total capital at the end of the year. I have been trying to find out what expenses are allowable against rental income and have been told some things but I'm not 100 per cent clear on whether mortgage interest is an allowable expense. Does anyone know if the rules on allowable expenses are written clearly anywhere on an official source? I have looked on official website and can't seem to find it written down. Many thanks