Buy to let tax calculator
Our buy-to-let tax calculator is provided by UK tax specialists Vantage Accounting. Complete the fields to calculate the amount of tax due on your rental income only (not your overall tax position).
Important: This calculator is for information only. No responsibility is taken for its use. Scottish landlords should note that the tax position in Scotland differs from England and may render inaccurate results.
For accurate and personalised landlord tax advice, or questions regarding the calculator, contact Vantage Accounting via their website.
Working out the tax on your buy-to-let income
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.
Checking your tax commitment is a sensible step and especially relevant post the Section 24 judicial review update.
You will need tax figures in order to work out potential profits from your buy to let.
You can check to see alternative buy to let mortgage options which may mean lower monthly repayments, which could help to reduce tax due on a buy to let property.
Are you up to date on buy to let and landlord taxation?
George Osborne made a massive changes to buy-to-let mortgage interest tax relief which will reduce the allowance to 20% by 2020.
Previously buy to let mortgage have enjoyed a higher level of tax relief than a standard residential mortgage. A phased reduction in the tax relief on buy to let mortgage interest started in 2017.
Landlord tax after buy to let interest relief withdrawal
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:
- 75% in 2017–18
- 50% in 2018–19
- 25% in 2019–20
- 0% in 2020–21 onwards
In its place, individuals will be able to claim a tax reduction, which will be calculated as 20% of the lower of:
- Finance costs not offset against income in the tax year
- Total taxable profits of the property business in the tax year*
- Total income (excluding that from dividends and savings) that exceeds the personal allowance and blind person's allowance (if applicable) in the tax year
* 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.