Rental Income Tax Calculator
Estimate UK rental income tax for individual landlords (2025/26), including the Section 24 mortgage interest restriction.
Your rental
Landlord Self Assessment from £79
We file your SA105 property pages, apply Section 24 mortgage credit correctly, and find every legitimate expense.
What rental income is taxable?
UK rental income is taxable on the profit (rent received minus allowable expenses). Reported on the SA105 supplementary page of Self Assessment. Tax depends on the legal structure:
- Individual landlord — taxed at your marginal income tax rate, with Section 24 mortgage interest restriction
- Limited company landlord — Corporation Tax (19%–25%) on profits, full mortgage interest deduction allowed
- Furnished Holiday Lettings (FHL) — until April 2025, treated as trading income (better tax position); regime abolished from Apr 2025
Section 24 — the mortgage interest restriction
Since 2020, individual residential landlords cannot deduct mortgage interest from rental profit the old way. Instead, you get a 20% basic-rate tax credit on the interest. Higher-rate landlords are hit hardest:
| Landlord band | Old rule (pre-2020) | Section 24 (now) |
|---|---|---|
| Basic rate | £10k interest = £2k tax saved | £10k × 20% credit = £2k saved (same) |
| Higher rate | £10k interest = £4k tax saved | £10k × 20% credit = £2k saved (£2k worse) |
| Additional rate | £10k interest = £4.5k tax saved | £10k × 20% credit = £2k saved (£2.5k worse) |
Section 24 only affects individuals. Limited company landlords still get full deduction.
Landlord deadlines
- 31 January — Self Assessment due (annual rental + balancing tax)
- 60 days from completion — when you sell a UK residential rental: file CGT return + pay any tax
- April 2026 — Making Tax Digital for landlords starts (income over £50k)
- April 2027 — MTD threshold drops to £30k
Landlord tax planning
- Replacement of Domestic Items relief — deduct cost of like-for-like replacements (beds, sofas, white goods)
- Travel to property — at 45p/mile or actual cost
- Letting agent fees, insurance, repairs — fully deductible
- Joint ownership with spouse + Form 17 to split unequally for tax efficiency
- Section 162 incorporation — model whether transferring to a Ltd company saves more than the SDLT cost
- Rent a Room scheme — first £7,500/year tax-free if a lodger lives in your main home
What this calculator does and doesn't do
- Section 24: mortgage interest is a 20% basic-rate tax credit, capped at the lower of (a) interest, (b) rental profit, (c) tax on rental profit
- Hits higher-rate landlords hardest
- Doesn't apply to companies — corporate landlords still get full deduction
- Doesn't include Furnished Holiday Lettings rules or capital allowances
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