You may prefer our new Landlord Income Tax Calculator which incudes detailed information from the 2023 tax year. The calculator below was provided for the transition of tax relief on buy to let properties to allow comparison or income tax calculations for landlords during the transition phase.
This Buy-to-let tax and profit calculator provides a tax calculation for an individual who buys and let properties and pays associated tax though traditional salary deductions which include PAYE and National Insurance.
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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 | |||||
| For most landlords, your Taxable profit is your income, as such it is processed through traditional income tax methods. Select a year below to produce an income tax estimate1 for the Tax Profit illustrated for the years above. | |
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