Ltd Company vs Personal Property Tax Calculator
✓ Verified for 2026/27Property & Income Details
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£
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
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.How We Calculated This
- Input variables: Enter the relevant amounts, rates, or percentages in the form.
- Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
- 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.