Free tools/Landlord Tax Calculator UK
Landlord Tax Calculator UK
Illustrate how Section 24 treats mortgage interest: taxable rental profit without full interest deductibility, a basic-rate finance-cost credit, and a side-by-side comparison if full deductibility still existed.
Repairs, insurance, agent fees, etc.
Salary, pensions, etc. - used to estimate your band
Property profit before finance
£15,000
Taxable property profit (Section 24)
£15,000
Finance costs not deducted
Income tax before finance credit
£11,432
Basic-rate finance cost credit
£1,800
20% of finance costs, capped at tax due
Estimated tax due (2026/27)
£9,632
If full interest deductibility still existed
£7,832
Educational comparison only
Extra tax from Section 24 (illustrative)
£1,800
Uses 2026/27 England / Northern Ireland / Wales personal allowance and bands. Scotland, NICs, student loans and other reliefs are not modelled. Not tax advice.
Section 24 in plain English
For most individual landlords, residential finance costs are no longer fully deducted when working out taxable property profit. Instead you claim a tax reduction equal to 20% of qualifying finance costs (subject to limits). Higher-rate taxpayers often feel the gap most.
Read Section 24 tax explained and our landlord tax calculator guide. Speak to a tax adviser before filing.
Frequently asked questions
- What is Section 24?
- Section 24 restricts how individual landlords deduct residential finance costs. Instead of deducting interest from rental profit, you usually get a basic-rate tax credit on qualifying finance costs.
- Is this calculator tax advice?
- No. It is an educational illustration using dated England / NI / Wales bands. Your accountant should confirm your position, including Scottish tax, reliefs and company structures.
- Why enter other taxable income?
- Your wider income affects which tax band rental profits fall into and whether the personal allowance tapers. That changes how painful the finance-cost restriction can feel.
Related
Illustrative only - not mortgage, tax or financial advice. Figures depend on your lender, tax status and circumstances. Always check with a qualified adviser before acting.