LANDLORD MONEY · GUIDES & TOOLS
Landlord expenses and the property allowance
Separate allowable running costs, financing and capital cash payments.
FROM RENT TO REAL INCOME
Your landlord take-home calculator.
Start with one property. Build the whole picture.
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 propertyPERSONALLY OWNED
Property 1Personally owned · £1,500 / month rent CollapseExpand
Property value & mortgage
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 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.
Your wider income & tax position
Other income, allowances & limitations
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.
Figures update when you change an input. Use non-identifying property labels only.
£5,414.00 per year · personal cash
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
- £2,686.00
- Corporation Tax
- £0.00
- Employer NI
- £0.00
- Employee NI & extraction tax
- £0.00
- Total tax & NI
- £2,686.00
- Personal cash + company cash
- £5,414.00
£33.16 tax · £66.84 personal · £0.00 company
Tax calculation breakdown
- Personal taxable property profit (incl. other property)
- £15,600.00
- Tax before finance relief (incremental)
- £4,186.00
- Finance-cost reduction
- £1,500.00
- 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)
- £8,172.00
- Company taxable profit
- £0.00
- Corporation Tax effective rate
- 0.00%
- 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
- £0.00
- Incremental dividend-related tax
- £0.00
- Net dividend
- £0.00
Personal bands before extraction
Non-savings (including property): £37,700.00 at 20% = £7,540.00
Non-savings (including property): £5,330.00 at 40% = £2,132.00
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
Portfolio & property dashboard
| 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 Personal | £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 | £15,600.00 | £2,686.00 | £5,414.00 | £451.17 | 7.20% 6.24% | 8.10% 5.41% |
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.
One-off transfer costs
Enter portfolio totals from estimates or quotes, including VAT where payable. Zero means no amount budgeted, not that no tax or fee applies. Use market values from the properties above; mortgage debt is not deducted from the land-tax value or capital gain.
Additional refinancing cash is included in the initial cash commitment for payback, but is not a fee. This model does not credit any eventual recovery of that capital. Do not count the full property value or replacement mortgage principal as a transaction cost.
Help estimate straightforward transfer taxes
Helpers use rules checked 28 September 2026 for 2026/27. Confirm the effective transfer date and replace estimates with professional figures. Helpers replace the corresponding budget field only when you press their button.
Property location, not your tax residence, determines land tax. Wales uses LTT; Scotland uses LBTT. Linked purchases can be taxed together, six or more dwellings have different rules, and certain company purchases over £500,000 face a separate rate. No incorporation or partnership relief is assumed.
Obtain the net gain from market value less allowable purchase costs, capital improvements and disposal costs, with any applicable reliefs/losses correctly allocated. Enter your remaining allowance and band after other gains and full-year taxable income. The helper does not determine these, assess incorporation relief or calculate tax for other owners. Defaults assume no exemption or basic-rate band remains.
HMRC company transfers · SDLT rates and portfolio rules · CGT rates · CGT allowance · Incorporation relief
Extra annual company costs
Only enter increases over existing costs. These are conservative cash deductions after the annual tax calculation; no tax relief on these additions is credited. Underlying mortgage balances and repayments remain unchanged. A different loan structure needs a separate scenario. Include any ATED/compliance cost advised for your company.
Complete and review the cost budget to show savings, payback and ROI. The planner does not assume a tax-free transfer.
Planning estimate, not a recommendation. Repeats a full 2026/27 year without growth, inflation, discounting, future rule changes, sale taxes or final extraction costs. Carried losses and finance relief may make the current year unrepresentative; this is not a year-by-year forecast. No part-year transfer, relief entitlement, director loan repayments or borrowing to fund transfer costs is modelled. Personal losses and finance-relief carry-forwards do not move to the company. New borrowing requires lender consent. These cost inputs stay in this session and are not included in scenario share links.
THE DETAIL BEHIND THE NUMBERS
What this means for your calculation
Record routine running costs separately from non-allowable cash costs and mortgage principal. The property allowance is an alternative treatment for eligible individuals across their property business; it cannot be layered on top of the same expenses and finance-cost reduction.
Worked example
For £10,000 rent and £100 expenses with no borrowing, actual expenses leave £9,900 taxable property profit. An eligible £1,000 property allowance leaves £9,000. Actual cash costs remain £100 under either treatment.
Are improvements treated like repairs?
Do not assume so. Capital improvements and property purchases are outside this model's allowable running expenses. Check the source guidance for the nature of each expense.
Tax rates last verified: 28 September 2026 · Official sources