LANDLORD MONEY · GUIDES & TOOLS

Corporation Tax for property companies

Understand profit thresholds, associated companies and Marginal Relief.

FROM RENT TO REAL INCOME

Your landlord take-home calculator.

Start with one property. Build the whole picture.

Tax year

Estimates only, not professional advice. Check the assumptions and current HMRC rules, and obtain qualified advice before filing tax returns or making property, finance or dividend decisions. Read our terms and limits of responsibility.

Your properties

1 property

LIMITED COMPANY A

Property 1Limited company A · £1,500 / month rent CollapseExpand

Property reference Ownership

Monthly rent £ / month

Void period % of year

Property value & mortgage

Property value £

Mortgage balance £

Interest rate % per year

Mortgage type Enter actual annual interest

Enter company assets at 100%. The model assumes you receive all extracted salary/dividends.

For repayment mortgages, use actual annual interest from your lender. Balance × rate is only a simple estimate. Capital repayment reduces cash, not taxable profit.

Running costs £2,400 / year

Enter costs

Management fees £

Insurance £

Repairs & maintenance £

Service charges £

Ground rent £

Licensing £

Accountancy / professional £

Utilities you pay £

Other allowable costs £

Non-allowable cash costs £

Enter positive amounts. Exclude mortgage interest and principal here. Changing frequency reinterprets the entered amounts.

Export or import properties

Save a JSON file containing property references, ownership, rent, mortgage and cost inputs. Personal income, company extraction settings and transfer-planner budgets are not included. Files contain financial information and are not encrypted; keep them private. Importing sends the file to this calculator session for processing, without saving it to a database.

Import action Choose a property export (JSON, max 256 KB)

Your wider income & tax position

Other employment / PAYE income £ / year, gross

Tax residence

Other income, allowances & limitations

Other non-savings income £ / year

Taxable pension income £ / year

Other net property profit £ / year

Other dividends £ / year

Savings income (not supported) £ / year

Unused finance costs brought forward £

UK property loss brought forward £

Personal expense treatment

Eligible for property allowance (no excluded connected-party/employer receipts or Rent a Room treatment) I have non-residence, trusts, partnerships, mixed-use property, pension contributions, Gift Aid, benefits or other complex reliefs

Other property profit affects your tax bands but is not included in portfolio cash. Enter all modelled personal finance costs in the property cards. Only simple UK property losses are supported.

Company extraction · Tax Efficiency Lab

How to use company profit

Cash to retain in company £ / year

Eligible for Employment Allowance?

A sole director who is the only employee liable for employer NI does not qualify. Check eligibility.

Company tax assumptions

Other associated companies Accounting period days

Company qualifies for small profits rate / Marginal Relief

Commercial lettings to unconnected tenants; no augmented profits or complex company structures. Period wholly within financial year 2026. Inputs must reflect that period. No company losses or reserves brought forward.

Figures update when you change an input. Use non-identifying property labels only.

YOUR ESTIMATED TAKE-HOME2026/27

£492.45/ month

£5,909.44 per year · personal cash

Retained inside your company£0.00 / year

Company cash is separate from money in your pocket.

Where your rent goes

Annual portfolio cash flow

Rent received: £18,000.00
Running costs: −£2,400.00
Mortgage interest: −£7,500.00
Mortgage capital repaid: −£0.00
Cash profit before tax: £8,100.00
Personal property tax: £0.00
Corporation Tax: £1,539.00
Employer NI: £0.00
Employee NI & extraction tax: £651.56
Total tax & NI: £2,190.56
Personal cash + company cash: £5,909.44

For every £100 of cash profit

£27.04 tax · £72.96 personal · £0.00 company

Tax calculation breakdown

Personal taxable property profit (incl. other property): £0.00
Tax before finance relief (incremental): £0.00
Finance-cost reduction: £0.00
Unused finance costs carried forward: £0.00
Property losses carried forward: £0.00
Personal Allowance (before extraction): £12,570.00
Total personal Income Tax after finance relief (before extraction): £5,486.00
Company taxable profit: £8,100.00
Corporation Tax effective rate: 19.00%
Gross salary: £0.00
Employer NI: £0.00
Total salary company cost: £0.00
Incremental salary Income Tax: £0.00
Employee NI: £0.00
Net salary: £0.00
Gross dividend: £6,561.00
Incremental dividend-related tax: £651.56
Net dividend: £5,909.44

Personal bands before extraction

Non-savings (including property): £27,430.00 at 20% = £5,486.00

Why is taxable profit higher than actual profit?

For personal residential lettings, mortgage interest reduces cash but is not deducted from taxable property profit. A separate finance-cost tax reduction applies within limits. Mortgage principal never reduces taxable profit. Explore Section 24.

View assumptions

Tax year 2026-27; England tax residence. UK residential property, annual estimates, no savings income, Gift Aid or pension relief. Property shares are applied before aggregation. Personal expense treatment: ActualExpenses.

Extraction: Dividends. Employment Allowance: NotSure (Not sure means none). Company model: 365 days within financial year 2026; 0 other associates. Standard full-year director NI; no NI deferral for other employments. Other income affects taxes but is excluded from displayed take-home.

Decimal calculations; display rounds to the nearest penny, midpoint away from zero. Capital growth, buying/selling/transfer costs and tax payment timing are excluded. Full methodology · Sources

Tax rates checked 28 Sept 2026

Portfolio & property dashboard

Total value £250,000.00Mortgage debt £150,000.00Equity £100,000.00Portfolio LTV 60.0%

Property estimates using your beneficial share. Tax and take-home are allocated from aggregate results; see methodology.
Property	Value / debt / equity	LTV	Rent / month	Annual rent	Costs / interest	Cash profit	Taxable profit	Allocated tax	After-tax cash	Personal / month	Gross / net yield	ROE / after-tax ROE
Property 1 Company	£250,000.00 £150,000.00 £100,000.00	60.00%	£1,500.00	£18,000.00	£2,400.00 £7,500.00	£8,100.00	£8,100.00	£2,190.56	£5,909.44	£492.45	7.20% 6.24%	8.10% 5.91%

TRANSFER COSTS & PAYBACK

Would moving to a company pay back?

Open transfer costs, savings and ROI planner

Compare transferring all personally owned properties to one company, with no director salary. Existing rent, borrowing and company tax settings are the starting point.

Landlord Money cannot currently model this situation accurately. The transfer planner currently needs a wholly personally owned portfolio with 100% beneficial shares. Joint and mixed ownership require a bespoke allocation.

THE DETAIL BEHIND THE NUMBERS

What this means for your calculation

This model is limited to unaugmented property profits, with no exempt distributions, group relief or chargeable gains. Thresholds are reduced for other associated companies and short accounting periods. Use a period wholly within financial year 2026; straddling rate years require a separate calculation.

Worked example

For an eligible company with £100,000 profit, no associates and a full year, the configured calculation is £25,000 less £2,250 Marginal Relief: £22,750 Corporation Tax.

Are associated companies counted including this one?

The input asks for other associated companies. The engine adds the modelled company to the divisor.

Tax rates last verified: 28 September 2026 · Official sources

Information, not advice. Landlord Money provides estimates for general information and educational purposes only. It does not provide tax, accounting, financial, investment, mortgage or legal advice. Tax treatment depends on individual circumstances and may change. Check calculations with HMRC and consider professional advice before making financial, ownership or tax decisions.