As a higher-rate taxpayer, how will Section 24 mortgage interest relief changes impact the actual income tax I pay on my £1500 monthly rental profit from a single buy-to-let property in 2024/25?
Quick Answer
As a higher-rate taxpayer, Section 24 means you no longer deduct mortgage interest from rental income. Instead, you'll receive a 20% tax credit on your finance costs, increasing your taxable profit and overall income tax liability.
About This Topic
Understand how Section 24 affects higher-rate taxpayer landlords in 2024/25. Learn to calculate your actual income tax on rental profit with the 20% tax credit.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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