Know your tax bill.
UK income tax calculator for landlords. See exactly how Section 24 affects your rental profits — updated for 2025/26.
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Understanding Section 24
Since April 2020, landlords can no longer deduct mortgage interest from rental income. Instead, you receive a basic-rate (20%) tax credit on your mortgage interest payments.
This primarily affects higher-rate (40%) and additional-rate (45%) taxpayers. If all your income falls within the basic rate band, Section 24 has no net impact on your tax bill.
Worked example:
A higher-rate taxpayer with £10,000 mortgage interest would previously have saved £4,000 in tax (40% x £10,000). Under Section 24, they receive only a £2,000 tax credit (20% x £10,000) — an extra £2,000 in tax per year.
Common questions
Section 24 (also known as the 'tenant tax') removed the ability to deduct mortgage interest from rental income. Instead, landlords receive a basic-rate (20%) tax credit. This means higher-rate and additional-rate taxpayers pay more tax on rental income than before April 2020.
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