If your tax bill has crept up even though your rents haven't, Section 24 may be the culprit. Tell us about your portfolio and we'll show you whether a company would leave you better off.
Ask any group of buy-to-let landlords why they are thinking about moving their properties into a limited company, and the same two words come up again and again: Section 24. It is the single biggest reason landlords have changed how they hold property over the last few years.
The frustrating part is that Section 24 is poorly understood. Many landlords know their tax bill has gone up but aren't quite sure why — especially when their rents and profits haven't really changed. This guide explains exactly what Section 24 does, walks through the numbers with a worked example, and shows why a company structure sidesteps it entirely.
Section 24 is the nickname for the "finance-cost restriction" — a rule that changed how individual landlords get tax relief on their mortgage interest. It was phased in between April 2017 and April 2020, and has been fully in force ever since.