See exactly how the Section 24 mortgage interest restriction affects your rental tax bill: your taxable profit, the flat-rate credit you receive on your mortgage interest, and how much extra tax you're paying compared with the old rules where interest was a deductible expense.
Net tax on rental income
£2,786
Income tax on your rental profit, minus the Section 24 credit
Effective rate on rental income
22.11%
Net tax ÷ taxable rental profit
Taxable rental profit is your rental income minus allowable running costs. Mortgage interest is not deducted here: instead it earns you a flat-rate credit, shown above, that's subtracted directly from your tax bill.
Before April 2020, mortgage interest was simply deducted from your rental income as an expense, like any other cost. Here's what your tax bill would look like if that were still the case.
From 6 April 2027, property income moves onto its own higher rates (22%/42%/47%) and the Section 24 credit rises to 22%. Here's your net tax on rental income under 2026/27 rules versus 2027/28 rules, using the figures you've entered.
Want the full picture, including how the Personal Allowance ordering change affects landlords with both a salary and rental income? Try the 2027 Tax Impact Calculator.
Talking to landlords right when their tax bill is on their mind
This slot sits beneath a live Section 24 tax result, in front of landlords actively working out what they owe and whether to restructure. Property tax accountants, Section 24 mitigation services and incorporation specialists all fit naturally here.