Rental income in the UK is subject to Income Tax after allowable expenses. In 2026/27 mortgage interest is no longer deductible — instead you get a 20% tax credit (Section 24). Full guide for individual landlords.
Section 24 has made personal buy-to-let more expensive for higher-rate taxpayers. But does a limited company actually save you money after corporation tax, extraction costs, and higher mortgage rates? A full 2026 comparison.
Section 24 replaced mortgage interest deduction with a 20% tax credit in 2020. In 2026 it still hits higher-rate landlords hard — here's exactly how much extra tax you're paying and what to do about it.
