Free tools/Limited Company vs Personal Landlord Tax
Limited Company vs Personal Landlord Tax
Compare illustrative tax if you hold the property personally under Section 24 versus through a limited company - with optional dividend extraction.
Often 19% or 25%
Personal route tax (Section 24)
£9,632
Company route total tax
£3,019
CT £1,500 + dividend tax £1,519
Personal cash left
-£3,632
Company-route cash left
£2,981
Illustrative difference
£6,613
Company looks lower tax in this model
Side-by-side
Educational only - incorporation has setup costs, mortgage product differences, and accountant fees not modelled here. Not tax advice.
How to use this tool
Section 24 is the usual reason landlords model a company. Run your own numbers and speak to an accountant before restructuring.
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Frequently asked questions
- Is incorporation always better?
- No. Mortgage rates, setup costs, and extraction plans matter. This is an educational comparison, not advice.
- Does the company deduct interest?
- In this model yes - companies generally deduct interest as a business cost, unlike Section 24 for individuals.
Related
Illustrative only - not mortgage, tax or financial advice. Figures depend on your lender, tax status and circumstances. Always check with a qualified adviser before acting.