Tax & compliance
Section 24 interest calculator.
Since 2020 you can't deduct mortgage interest from rental profit — you get a flat 20% tax credit instead. See what that really costs you, and whether it tips you into the higher-rate band.
Your figures
Personally-held property, 2025/26 tax year.
Salary, pension, dividends — sets your tax band.
£
£
Everything except mortgage interest.
£
£
Section 24 hits higher-rate landlords hardest. Your rental income now counts gross toward your total income — so it can push you over £50,270 even when your real profit is small. Incorporation sidesteps this; model it next.
Extra tax from Section 24
—
Tax the old way
—
Tax now (S24)
—
Profit before interest—
Taxed as income (S24)—
20% interest credit—
Profit after tax—
How this is calculated
- Old way: interest fully deducted, profit taxed at your marginal rate.
- S24: rent − expenses taxed as income; then a 20% credit on interest.
- Bands 2025/26: 20% to £50,270 · 40% to £125,140 · 45% above.
- Personal allowance £12,570 (taper above £100k not modelled).
Track it automatically
PAM categorises every expense.
Income and costs are SA105-categorised as they happen — ready for your MTD quarterly update.