Section 24 Tax Calculator for Landlords
Estimate your rental profit, taxable income and the impact of the Section 24 mortgage-interest restriction so you can plan ahead and decide whether incorporation might help.
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Your estimate
2025/26 England & Wales bands. Indicative only — not tax advice.
Frequently asked questions
▸What is Section 24?
Section 24 of the Finance (No.2) Act 2015 restricts the tax relief landlords can claim on mortgage interest. Instead of deducting interest as an expense, you get a 20% tax credit.
▸Does Section 24 affect limited companies?
No. Section 24 only applies to individual landlords. Companies can still deduct mortgage interest as a business expense.
▸Is the calculator UK-wide?
Yes. The Section 24 rules apply to UK income tax. Scottish bands differ slightly — speak to an accountant for Scottish-specific advice.
▸Will this work for joint owners?
Enter only your share of the rent, expenses and mortgage interest. Each owner is taxed on their own share.
▸Should I incorporate to avoid Section 24?
Maybe — but incorporation has stamp duty and capital gains tax implications. Use this calculator as a starting point and get professional advice.
▸Does the calculator handle the basic-rate band?
Yes — the 20% mortgage-interest credit is capped at the lower of mortgage interest, rental profit, or adjusted total income.
▸Are letting agent fees and maintenance allowable?
Yes — these and most running costs remain fully deductible. Only finance costs are restricted.
▸Is this regulated tax advice?
No. It is a free estimator. Speak to a qualified accountant before making major decisions.
▸How accurate is the tax-band logic?
We use 2025/26 England & Wales bands. Update inputs if HMRC changes them.
▸Can I save my results?
Yes — sign in and save the scenario to your landlord dashboard, or email it to yourself.