Can limited company landlords deduct mortgage interest as an expense?

Yes. Limited company SPVs (Special Purpose Vehicles) are exempt from Section 24 and can deduct 100% of mortgage interest as a standard business expense before Corporation Tax.

What other expenses can individual landlords still deduct?

Landlords can still deduct letting agent fees, landlord insurance, council tax/utilities paid by landlord, and general property maintenance/repairs.

United KingdomSection 24 Landlord Mortgage Tax RestrictionFinance & Salary

UK Buy-to-Let Mortgage Tax (Section 24) Landlord Calculator

Calculate individual private landlord income tax under HMRC Section 24 rules (taxed on full gross rental turnover with a 20% basic rate finance cost tax credit instead of deducting mortgage interest as an allowable expense).

Real Estate & Property Landlords & Buy-to-Let Taxes & Duties

Calculator Inputs

Live Real-Time

Annual Gross Rental Income (£)

Quick select:

Annual BTL Mortgage Interest Paid (£)

Quick select:

Allowable Operating Expenses (Insurance, Repairs, Agency Fees) (£)

Quick select:

Landlord Personal Marginal Income Tax Band

Calculated ResultSection 24 Landlord Mortgage Tax Restriction

Net Annual Landlord Cashflow in Pocket (After Mortgage & Section 24 Tax)

£2,880

Total HMRC Tax Payable on Rental Property

£4,720

20% Mortgage Finance Cost Tax Credit Received

£1,680

Detailed Calculation Breakdown

Taxable Rental Profit

£16,000

Gross Tax (40%)

£6,400

20% Tax Credit

£1,680

Net Landlord Profit

£2,880

Calculation Methodology

Taxable Rental Profit = Gross Rent - Property Running Costs. Gross Tax = Taxable Profit * Marginal Tax Rate%. Tax Credit = Annual Mortgage Interest * 20%. Net Tax Payable = Gross Tax - Tax Credit.

Important Legal & Educational Disclaimer

Under Section 24, higher-rate and additional-rate landlords pay tax on gross rental profit, frequently pushing landlords into higher income tax brackets.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Section 24 prevents landlords from deducting mortgage interest from rental revenue. Instead, landlords pay tax on gross profit and receive a basic 20% tax credit on finance costs.

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United Kingdom

UK Buy-to-Let Mortgage Tax (Section 24) Landlord Calculator

Calculator Inputs

Detailed Calculation Breakdown

Calculation Methodology

Important Legal & Educational Disclaimer

Frequently Asked Questions

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