UK Section 24 Landlord Tax Calculator
Compare pre-Section 24 full interest relief against the current 20% tax credit and see the effective tax rate on your rental profit.
- Finance Cost Credit
- 20%
- Basic rate
- Higher Rate
- 40%
- Tax band
- Additional Rate
- 45%
- Tax band
Formula & Statutory Rule
Formula
current_tax = max(0, (rent − costs) × band − interest × 20%)
Statutory Rule
pre_s24_tax = (rent − costs − interest) × band; credit = interest × 20%Regional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Basic | 20% | Credit rate |
| Higher | 40% | Tax band |
| Additional | 45% | Tax band |
Frequently Asked Questions
What is Section 24?
Section 24 restricts mortgage interest relief for landlords to a 20% tax credit rather than a full deduction.
Who is affected most?
Higher and additional rate taxpayers lose the most, because the credit is fixed at 20%.
How is the credit applied?
The 20% credit is deducted from the tax otherwise payable on rental profit.
Can I still deduct other costs?
Yes. Operating costs, management fees and maintenance remain fully deductible.