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Vision ConsultingProperty Lab

Landlord tax calculator

Compare the ongoing tax on rental income in your own name and through a company.

2026/27Free · No email required

Your figures

How it works & sources ↓
Scope and assumptions

Compare the ongoing tax on your rental profit either way. Nothing you type leaves your browser.

Not modelled: the £1,000 property allowance (2026/27), property losses and finance costs brought forward from an earlier year, National Insurance, company running costs, and a company accounting period shorter than 12 months. Sources: GOV.UK: Income Tax rates, Welsh Income Tax, Income Tax in Scotland, Corporation Tax rates, Corporation Tax rates and allowances, tax on dividends and tax relief for residential landlords. Figures checked 5 September 2026. This is general information, not advice. Your position depends on your circumstances. Speak to us before acting.

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Associated companies divide the £50,000 and £250,000 corporation tax limits (FY2026), so with one other company they become £25,000 and £125,000 (CTA 2010 s18D). Leave it at 0 if this would be your only company. Do not count a company that has not carried on a trade or business in the period, and count a company controlled by a relative or a business associate only where the two businesses are substantially interdependent (CTA 2010 s18E).

Tick this only where letting to connected people is what the company would wholly or mainly do. A company letting mainly to unconnected tenants on commercial terms keeps the small profits rate and marginal relief (CTA 2010 s18N).

UK-resident individual; ordinary residential letting. No savings income, other dividends, pension or Gift Aid adjustments, brought-forward losses or finance costs. The company has a 12-month period, no other profits or exempt distributions. Entering a joint share assumes that share is the company’s entire letting business. Property allowance and incorporation costs are not included.

Your estimate

Enter your figures, then calculate to see the result and its breakdown.

Personally (2026/27)

Limited company (FY2026)

This compares ongoing tax only. Moving an existing property into a company can trigger CGT and SDLT and needs advice.
This calculator compares the ongoing tax on your rental income in your own name against a limited company, using 2026/27 personal rates and FY2026 corporation tax.
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Personally, mortgage interest is not deductible: you pay income tax on rent minus other expenses, then claim a 20% (2026/27) Section 24 credit on the interest. In a company, interest is deductible and profits bear corporation tax at 19% up to £50,000, marginal relief to £250,000, then 25% (FY2026), with dividend tax on top if you draw the profits out.

Planning a new purchase? Use our buy-to-let calculator to explore purchase costs, cash flow and a tougher year.

How to use it

  • Enter your annual rent, mortgage interest and other expenses. If you own the property jointly, enter your share of each.
  • Add your other income (salary, pension, and so on), and say where you pay income tax, because a Scottish taxpayer pays Scottish rates on rental profit. Say how many other companies you or your associates control, because each one divides the £50,000 and £250,000 corporation tax limits (FY2026).
  • Tick whether you would draw the company's profit as dividends, because a company only looks cheap while money stays inside it: dividends above the £500 allowance are taxed at 10.75%, 35.75% or 39.35% (2026/27).
  • Then flip the 2027/28 preview to see the personal side under 2027/28 rules: property income taxed at 22%, 42% and 47%, with the Section 24 credit rising to 22% (from 6 April 2027). The preview uses the UK property rates, because Scottish and Welsh rates for 2027/28 are not yet published.

Be careful with what this comparison cannot tell you

This compares ongoing tax only. Moving an existing property into a company is a disposal and a purchase: it can trigger capital gains tax and stamp duty land tax, company mortgages usually cost more, and there are running costs for accounts and filings. The right answer depends on your income, your gearing, how long you will hold, and your exit and inheritance plans. Do not incorporate on the strength of a calculator, this one included.

Assumptions and limits

Figures are correct as at 5 September 2026, from GOV.UK: Income Tax rates, Income Tax in Scotland, Corporation Tax rates and tax on dividends. Not modelled:
  • National Insurance, and employer costs of salary extraction.
  • The £1,000 property allowance.
  • Estimates only.

Frequently asked questions

Does a limited company always beat owning personally?

No. While profits stay in the company the company route often shows less tax, because interest is deductible and corporation tax starts at 19% (FY2026). Draw the profits as dividends and the gap narrows or reverses, especially for basic rate taxpayers. Higher rate taxpayers with large mortgages tend to benefit most; run your own numbers.

Can I just transfer my existing property into a company?

You can, but the transfer is treated as a sale at market value. That can crystallise capital gains tax, and the company usually pays stamp duty land tax including the additional-dwelling surcharge on the way in. Incorporation relief exists for genuine property businesses but has conditions. This is exactly the decision to take advice on before acting.

What changes for landlords from April 2027?

From 6 April 2027 property income in England and Northern Ireland has its own income tax rates of 22%, 42% and 47% (2027/28; in Wales they depend on the Welsh rate the Senedd sets, and Scotland sets its own), and the Section 24 credit on mortgage interest rises from 20% to 22%. Both are in the calculator's preview toggle. Dividend rates already rose to 10.75% and 35.75% from 6 April 2026, a year earlier.

How is dividend tax worked out in the company column?

The calculator assumes the company's post-tax profit is drawn as dividends on top of your other income. The first £500 is covered by the dividend allowance (2026/27); the rest is taxed at 10.75% within your basic rate band, 35.75% above it and 39.35% above £125,140. Where the dividend takes your income over £100,000 it also reduces your personal allowance, and the extra tax that causes on your other income is included in the company column.

What is marginal relief on corporation tax?

For FY2026, profits up to £50,000 pay 19% and profits over £250,000 pay 25%. Between the two, tax is 25% minus marginal relief of 3/200ths of the shortfall below £250,000, so the effective rate climbs gradually. The calculator applies the formula automatically.

Method and official sources

Read the calculation guidance above alongside the official sources. Check the scope and assumptions before using your result.

Vision Consulting · Chartered Accountants

Last updated 23 September 2026

Tax assumptions: 2026/27 · Sources checked 23 September 2026

This is an estimate for general information, not advice. Your position depends on your circumstances. Speak to us before acting.