FAQs
How much rental mortgage interest can I claim?
For the year ended 31 March 2025 you can claim 80% of the interest. From 1 April 2025 full deductibility is restored, so you can claim 100% for the 2025-26 year.
Can a rental loss reduce the tax on my salary?
Generally no. Residential rental losses are ring-fenced, so they can't offset your other income. The loss is carried forward against future rental income instead.
I rent out rooms in my own home — can I claim all the expenses?
No. You apportion expenses for the rented portion, usually by floor area or number of bedrooms, and by the time the rooms were actually rented out.
Does this calculator handle the bright-line test?
No — it estimates tax on rental income only. The bright-line test relates to selling a property and is separate.
This calculator provides an estimate only and is not tax advice. Figures are based on standard rules for the tax years shown and don't account for your full individual circumstances. For advice specific to your situation, please get in touch.