Please note that this calculator is for guidance purposes only. It does not account for all possible circumstances or future changes in tax rates and allowances, and is meant to give only a general indication of tax liability now and in future years. For in-depth personal guidance, consult a professional accountant or tax advisor.
The buy-to-let tax calculator will give you a good indication of the amount of tax you may need to pay on your rental income for the 2016–17 tax year. Checking your tax commitment is a sensible step and especially relevant post the section 24 judicial review update.
George Osborne made a massive change to buy-to-let mortgage interest tax relief which will reduce the allowance to 20% by 2020.
Learn more about landlord tax.
Read more about the potential impact of changes to buy-to-let tax relief from the 2015 Budget onwards. 2015 and 2016 were important years for rental property tax issues.
First, input your annual rental income.
Next, input any other annual income you receive that is subject to UK tax, as well as any allowable expenses you intend to offset.
Allowable expenses include:
Please note that this calculator makes standard assumptions to estimate your tax bill.
Starting in the 2017–18 tax year, HMRC will incrementally restrict tax relief for buy-to-let mortgage interest.
The amount on which you can claim relief will be reduced as follows:
In its place, individuals will be able to claim a tax reduction, which will be calculated as 20% of the lower of:
* If this is the figure used, any excess mortgage interest may be carried forward to the following year
Use the 'tax year' field to get a general indication of the tax impact of the changes to buy-to-let mortgage interest relief in a given tax year.
Calculate your monthly repayments for an interest only or capital repayment Buy to let mortgage.Load this calculator
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Find out if your tenant(s) will be able to comfortably afford your monthly rent using our Buy to Let rent affordability calculatorLoad this calculator
Establish if you will achieve a profitable return on investment from property purchase with our yield calculator.Load this calculator
Most landlords need to pay extra stamp duty land tax (SDLT) on buy-to-let property acquisitions. Use our stamp duty calculator to find out how much you need to pay.Load this calculator
For buy-to-let investors, an LTV calculator can be an invaluable tool to check the ratio between the value of their property and the debt secured against it.Load this calculator