Section 24

Section 24 of the Finance (No.2) Act 2015 introduced a significant change to how residential landlords are taxed in the UK. It restricts the ability to deduct mortgage interest and finance costs from rental income, replacing this with a basic rate tax credit instead.

For many landlords, Section 24 has increased taxable income and, in some cases, pushed them into higher tax bands. Understanding how it applies and what options may exist, is essential.

SynergiseUK provides access to independent specialist tax advisers who help landlords understand the impact of Section 24 and review their wider tax position.

Section 24 and How Support Is Provided

SynergiseUK is not a tax adviser.

We introduce landlords and property owners to carefully selected, independent property tax specialists who provide advice directly. Our role is to connect you with the appropriate expertise and then step back, working alongside your existing accountant or Tax Adviser where required.

What Is Section 24?

Section 24 limits the tax relief individual landlords can claim on mortgage interest and other finance costs for residential property.

Instead of deducting these costs from rental income:

• Finance costs are no longer fully deductible

• A basic rate (20%) tax credit is applied instead

This change affects how rental profits are calculated and can significantly increase tax payable for higher rate and additional rate taxpayers.

Who Does Section 24 Apply To?

Section 24 generally applies to:

• Individual landlords

• Jointly owned rental properties

• Landlords operating through partnerships

It does not apply to:

• Limited companies

• Furnished Holiday Lets (subject to current legislation)

• Certain commercial property arrangements

Correct classification is important, particularly for mixed portfolios.

Why Section 24 Can Have a Major Impact

Section 24 can:

• Increase taxable rental income

• Push landlords into higher tax bands

• Reduce net rental profit

• Affect affordability calculations and cash flow

• Influence long term portfolio decisions

Many landlords only feel the full impact once returns are filed.

When Section 24 Support Is Useful

Specialist support is commonly required where landlords are:

• Higher rate or additional rate taxpayers

• Experiencing reduced rental profitability

• Reviewing portfolio structure

• Considering incorporation or restructuring

• Managing mixed residential and commercial portfolios

• Planning long term property investment strategies

Early review helps clarify options and implications.

What Section 24 Support Covers

• Assessment of how Section 24 applies

• Review of rental income and finance costs

• Consideration of ownership and structure

• Identification of wider tax planning issues

• Coordination with existing advisers

• Guidance on future planning considerations

Why Choose SynergiseUK?

Clear Referral to Specialist Advisers
SynergiseUK does not advise on Section 24. We introduce you to independent specialists with relevant property tax expertise.

Access to Experienced Property Tax Professionals
Specialists familiar with landlord taxation and Section 24 implications.

Specialist Led, Not Product Led
Introductions are based on suitability, not sales or financial products.

Works Alongside Your Existing Advisers
Support complements your accountant or Tax Adviser.

Transparent and Simple Process
We make the introduction and then step back.

Understand How Section 24 Affects Your Property Income

If you own residential rental property, a specialist review can help clarify how Section 24 applies to you and what this means for your overall tax position.