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Tax - allowable deductions from rental income


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I have a question regarding my tax liability for the coming year.

I work for a bank and have taken advantage of a staff mortgage deal which I have on a property I now rent out. As the interest rate is not publically available I am obliged to pay benefit in kind tax on this (based on the benefit I receive through paying a lower rate of interest to the one set by the Inland Revenue)

As the Inland Revenue rate for beneficial loans is quite high at the minute the tax liability could be significant. However, as you can off-set interest payments on mortgages from rental income would I be able to off-set the benefit in kind tax I need to pay? (as essentially this is an interest cost the Inland Revenue are assuming I would have paid had I been on a 'normal' rate of interest).

Hope that makes sense.

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