This Buy-to-let tax and profit calculator provides a tax calculation for properties and provides comparison of the impact of the changes to Private Landlord legislation announced in 2015.
In simple terms, the new tax legislation sees tax relief on mortgage interest paymanets go from 100% to zero over a four year period. The aim of this legislation is to reduce the number of private landlords, deter future investment by landlords and release more properties back to the market for homebuyers.
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| Transition Tax Phase | New Tax Rules | |||||
|---|---|---|---|---|---|---|
| 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | ||
| Rental income | ||||||
| - | Tax deductible costs | |||||
| - | Mortgage interest | |||||
| = | Pre-tax Profit | |||||
| Tax relief % | 100% | 75% | 50% | 25% | 0 | |
| + | Taxable Mortgage interest | |||||
| Tax credit rate | 0 | 20% | 20% | 20% | 20% | |
| - | Tax credit amount | |||||
| = | Taxable Profit | |||||
| Need an income tax breakdown on those numbers? Use our Landlord Income Tax calculator to understand how your net income will be affected by the reduction in mortgage interest relief. Alternatively, click on any of the amounts below for a standardised income tax illustration for the amounts shown |
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