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.

Regno UnitoSection 24 Landlord Mortgage Tax RestrictionFinanza

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).

Immobili e Proprietà Locatori e Immobili a Reddito Imposte e Tasse

Parametri di Input

In tempo reale

Annual Gross Rental Income (£)

Selezione rapida:

Annual BTL Mortgage Interest Paid (£)

Selezione rapida:

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

Selezione rapida:

Landlord Personal Marginal Income Tax Band

Risultato CalcolatoSection 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

Dettaglio del Calcolo

Taxable Rental Profit

£16,000

Gross Tax (40%)

£6,400

20% Tax Credit

£1,680

Net Landlord Profit

£2,880

Metodologia di Calcolo

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.

Disclaimer Legale e Informativo

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

Questo calcolatore è progettato solo a scopo educativo e informativo. I risultati non costituiscono una consulenza finanziaria o legale vincolante.

Domande Frequenti

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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Regno Unito

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

Parametri di Input

Dettaglio del Calcolo

Metodologia di Calcolo

Disclaimer Legale e Informativo

Domande Frequenti

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