Why landlords are paying more
Since Section 24 was fully phased in, individual landlords can't deduct mortgage interest from their rental income. You're taxed on the rent minus your other costs, then given a credit at the basic rate for the interest. If you're a higher-rate taxpayer, that means paying tax on profit you never actually receive.
From 6 April 2027 it gets tougher. Property income gets its own tax rates of 24%, 44% and 49%, and your personal allowance is used against your other income first.
Is there anything you can do? Often, yes. How properties are owned, how they're financed and how income is split can all make a difference, but every option has costs and traps. Talk to a specialist.
Frequently asked questions
What is Section 24?
The rule that stops individual landlords deducting mortgage interest from rental income for residential property. Instead you get a tax credit at the basic rate, so higher-rate landlords are taxed on profit they don't actually make.
What are the property income tax rates from April 2027?
From 6 April 2027, rental profits in England, Wales and Northern Ireland are due to be taxed at 24%, 44% and 49%, following Budget 2025 and Budget 2026. Mortgage interest relief rises to 24%.
Does Section 24 apply to limited companies?
No. Companies can deduct mortgage interest as a normal business cost, but there are other costs, such as corporation tax, tax on dividends and the cost of moving properties into a company.
Request a call back
Tell us a little about your situation and we'll call you, usually within one working day, to understand what you need. If it would help, we'll then put you in touch with a landlord tax specialist. We'll always tell you who they are before passing on your details. We don't give advice ourselves, and there's no obligation.