What is uncaptialised interest?

The meaning of Uncapitalised Interest can vary. The following are common uses of it.

In Business Accounts

Interest is usually classed as an expense and is subtracted from profit for the year and is considered uncapitalised. If the interest is for a building that is going to increase in value each year by more than the interest paid, the interest can be added to the original cost of the building rather than subtracted from the profit for the year.

How this can be done varies with different accounting standards.

In Home Loans

In home loans the interest can be paid or may be added to the amount outstanding on the loan (capitalised). Some loans have a bit of both.

Uncapitalised interest should be the interest you have paid.

Different banks may have slightly different meanings for the term and the meaning is generally listed in the terms of service of the loan.