Question 1

How does Section 24 affect landlords?

Accepted Answer

Section 24 removed the ability for individual landlords to deduct mortgage interest as an expense. Instead, you get a 20% tax credit. Higher-rate and additional-rate taxpayers pay significantly more tax on rental income. Company landlords are unaffected.

Question 2

Should I set up a limited company for my rental properties?

Accepted Answer

It depends on your tax rate, mortgage costs, and long-term plans. A company pays corporation tax at 19-25% and can deduct mortgage interest in full. However, transferring existing properties triggers SDLT and potentially CGT.

Question 3

What are the SDLT implications of incorporating rental properties?

Accepted Answer

Transferring properties to your own company is treated as a market-value sale. You'll pay SDLT at the higher rates for additional properties (3% surcharge) on the full market value.

Question 4

When is the right time to incorporate as a landlord?

Accepted Answer

Incorporation is typically best when buying new properties, when you're a higher-rate taxpayer with large mortgage interest, or when you plan to reinvest profits rather than extract them.

Landlord Tax Calculator: Individual vs Limited Company 2025/26

Frequently asked questions

Related calculators

Income Tax

Capital Gains Tax

Corporation Tax