The same rent and costs, taxed under this year's rules and next year's. Find the landlord closest to you, then put your own figures into the calculator.
Salary £30,000. One flat bringing in £12,000 rent with £2,000 of expenses.
+£400 a year from April 2027| Rental profit £10,000 | 2026/27 | 2027/28 |
|---|---|---|
| Tax before mortgage relief | £2,000 | £2,400 |
| Mortgage interest relief | £0 | £0 |
| Tax due on rental profit | £2,000 | £2,400 |
With no mortgage there is no relief to soften the rise, so the full four points land on the £10,000 profit.
Salary £28,000. Rent £14,400, expenses £2,400, mortgage interest £5,000.
+£280 a year from April 2027| Rental profit £12,000 | 2026/27 | 2027/28 |
|---|---|---|
| Tax before mortgage relief | £2,400 | £2,880 |
| Mortgage interest relief | -£1,000 | -£1,200 |
| Tax due on rental profit | £1,400 | £1,680 |
The credit grows by £200, which covers the rise on the £5,000 of profit that goes on interest. The other £7,000 of profit costs 4% more.
Salary £45,000. Rent £18,000, expenses £3,000, mortgage interest £6,000.
+£360 a year from April 2027| Rental profit £15,000 | 2026/27 | 2027/28 |
|---|---|---|
| Tax before mortgage relief | £4,946 | £5,546 |
| Mortgage interest relief | -£1,200 | -£1,440 |
| Tax due on rental profit | £3,746 | £4,106 |
£5,270 of the profit is taxed at the basic rate and £9,730 at the higher rate. Relief stays at the basic property rate on all of the interest.
Salary £70,000. Rent £30,000, expenses £5,000, mortgage interest £11,000.
+£560 a year from April 2027| Rental profit £25,000 | 2026/27 | 2027/28 |
|---|---|---|
| Tax before mortgage relief | £10,000 | £11,000 |
| Mortgage interest relief | -£2,200 | -£2,640 |
| Tax due on rental profit | £7,800 | £8,360 |
All of the profit is taxed at 44%. Relief on the interest rises to 24%, leaving the same 20-point gap as before.
Pension £9,000. Rent £24,000, expenses £4,000, no mortgage.
+£657 a year from April 2027| Rental profit £20,000 | 2026/27 | 2027/28 |
|---|---|---|
| Tax before mortgage relief | £3,286 | £3,943 |
| Mortgage interest relief | £0 | £0 |
| Tax due on rental profit | £3,286 | £3,943 |
The pension uses £9,000 of the Personal Allowance. The remaining £3,570 covers part of the profit, and the other £16,430 is taxed at 24%.