Ltd Company vs Personal Property Tax Calculator 2026/27

Ltd Company vs Personal Property Tax Calculator

✓ Verified for 2026/27

Property & Income Details

£
£
Personal ownership does not allow interest deduction (Section 24). Ltd Companies do.
£
Letting fees, maintenance, insurance, etc. (excluding interest)
£
Salary, dividends, etc. Used to calculate your personal tax bracket.
ⓘ

In a Ltd Company, mortgage interest is fully deductible from business profits before Corporation Tax. Individually, you pay tax on rental profits before interest, but receive a 20% tax credit on the interest amount.

Best Route
Ltd Company
Saves £420 per year
Personal Net Income
£8,200
cash after personal tax
Ltd Extracted Net
£8,620
cash after CT & dividend tax
Ltd Company Retained
£10,530
if profits left in company

Personal Ownership (Individual)

Gross Rental Income £24,000
Running Expenses -£3,000
Taxable Property Profit £21,000
Income Tax (Before Relief) -£8,400
Section 24 Tax Credit (20%) +£1,600
Actual Mortgage Interest -£8,000
Net Cash in Pocket £6,200

Ltd Company Structure

Gross Rental Income £24,000
Expenses & Interest Deducted -£11,000
Company Net Profit £13,000
Corporation Tax (19%-25%) -£2,470
Net Company Profit (Retained) £10,530
Dividend Tax (extracted) -£1,910
Net Extracted Cash £8,620

How We Calculated This

  1. Input variables: Enter the relevant amounts, rates, or percentages in the form.
  2. Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
  3. Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.
With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Frequently Asked Questions

Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

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About This Calculator

This calculator uses the latest HMRC rates for the 2026/27 tax year. For illustrative purposes only — always consult a qualified tax adviser for formal advice.