True net yield after tax — personal vs limited company, three scenarios side by side
Section 24 (since 2020): Personal landlords cannot deduct mortgage interest — they receive only a 20% basic rate tax credit. Ltd companies retain full interest deductibility. This calculator shows the real difference.
Personal ownership
Section 24 applies — only 20% interest credit regardless of tax band
Gross yield—
Tax due (S24)—
Net cash flow/yr—
Net cash yield on deposit—
Total economic return yield—
Ltd Company — retain profits
Full interest deductible. Corp tax on profit. Money stays in company.
Gross yield—
Corp tax + acctancy—
Retained in company/yr—
Net cash yield on deposit—
Total economic return yield—
Ltd Company — extract dividends
Corp tax first, then dividend tax when you take the money out.