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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.

Buy-to-let tax and profit calculator
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Buy-to-let tax calculation
Transition Tax PhaseNew Tax Rules
2016/172017/182018/192019/202020/21
Rental income
-Tax deductible costs
-Mortgage interest
=Pre-tax Profit
Tax relief %100%75%50%25%0
+Taxable Mortgage interest
Tax credit rate020%20%20%20%
-Tax credit amount
=Taxable Profit
Buy-to-let Income Tax Considerations
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

About this tax calculation

  1. This tax calculation applies the tax allowances for the current year against all income forecasts shown in the Buy-to-let calculator. It does not use forecast income tax figures for future years due to the variance that tends to occur from year to year. The income tax calculations are designed to provide you a comparative benchmark of what your earnings from your properties could look like after the new tax laws come into effect for private landlords.

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