![]() ![]() ![]() ![]() The buy-to-let mortgage tax relief calculator is a manual process based on a complex scenario. In this instance, a landlord would get relief as follows. The relief on mortgage interest is 20% of the cost. Landlords do get a reducer on the profits made. – £500 profits (excluding mortgage interest costs)įor a high-rate taxpayer, landlords would pay income tax on the profits as follows – £500 Rental costs (ignore mortgage interest) That said, all you need to do is work out the tax based on the profit (excluding interest costs). The buy-to-let mortgage tax relief calculator does not take tax into account. Landlords will need to take the buy-to-let profit and then deduct tax based on your circumstances:Ġ% income tax on buy-to-let profits for zero profits or for people that have profits below £12,570 personal allowance plus the additional £1,000 profit allowance (under certain circumstances)Ģ0% income tax on buy-to-let profits for basic rate taxpayers that have a total income that exceeds the personal allowance up to £50,270 (plus the £1,000 property profit allowance)Ĥ0% income tax on buy-to-let profits as a high rate taxpayer that has earnings above £50,270 but less than £150,000Ĥ5% income tax on buy-to-let property profits on earnings that exceed £150,000. The calculator will tell you the profit you will make from the property when taking off costs from the rental income. Please be aware that the buy-to-let mortgage tax relief calculator needs a little care when reviewing the numbers. UK Buy-to-let mortgages interest tax relief calculator ![]()
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