Tax Year 2026/27

Landlord (Property Income) Calculator

Calculate your take-home pay from rental income, including Section 24 mortgage interest restriction, capital gains on property disposal, student loans, and pension relief — updated for the 2026/27 tax year.

Rental Income

Other Income

Student Loans

Pension

Section 24 — Mortgage Interest

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Section 24 Restriction: Since April 2020, mortgage interest is no longer deducted from rental income. Instead, you receive a 20% tax credit on mortgage interest paid. This means higher and additional rate taxpayers pay more tax on rental income than before the restriction.

Section 24 applies to individual landlords only; limited companies can still deduct mortgage interest in full. HMRC: Mortgage interest restriction →

Tax Breakdown

Rental Income £0
Other Expenses −£0
Rental Profit £0
Other Income £0
Total Income £0
Pension −£0
Personal Allowance £12,570
Income Tax −£0
Mortgage Interest Tax Credit (20%) £0
Net Tax After Credit −£0
Student Loan −£0
Annual Take-Home £0
Monthly Take-Home £0
Effective Rate: 0.0%
Marginal Rate: 0.0%

Mortgage Interest Impact

Tax Without Section 24 (old rules) £0
Tax With Section 24 (current) £0
Extra Tax Due to Restriction £0

This shows the impact of the Section 24 mortgage interest restriction for higher rate taxpayers. Under the old rules, mortgage interest was deducted from rental income before tax. Under current rules, you pay tax on the full rental profit and receive a 20% tax credit instead.

Capital Gains on Property Disposal

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Gain £0
Annual Exempt Amount £0
Taxable Gain £0
CGT Rate 0%
CGT Due −£0
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Important: You must report and pay CGT within 60 days of completion for UK residential property.

Your Tax Calendar

Assumptions & Limitations

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  • Section 24 mortgage interest: Finance costs are restricted to a 20% basic-rate tax credit. This applies to all individual landlords but not to limited companies holding property. HMRC: Mortgage interest restriction →
  • Allowable expenses: Only qualifying property expenses (repairs, letting fees, insurance etc.) are deductible. Improvements are capital expenditure and not allowable against rental income. HMRC: Allowable property expenses →
  • CGT on property: Residential property CGT rates are 18% (basic) and 24% (higher). You must report and pay within 60 days of completion. Private residence relief may apply to your main home. HMRC: CGT on property →
  • Furnished holiday lets: The tax advantages for furnished holiday lettings were removed from April 2025. This calculator treats all rental income the same. HMRC: Furnished holiday lets →
  • NI on rental income: Rental income is generally not subject to National Insurance unless HMRC considers it a trade. This calculator does not apply NI to rental profits. HMRC: Renting out property →

This calculator is for illustrative purposes only and does not constitute financial or tax advice. Calculations are based on announced HMRC rates for the 2026/27 tax year. Always consult a qualified accountant or tax adviser for personalised guidance. Student loan repayment thresholds and rates are subject to annual review by the Student Loans Company.

Annual Take-Home £0
Monthly Take-Home £0