Does Section 24 apply to limited companies?
Last verified 23 October 2026
No. The Section 24 restriction on finance cost relief applies to individual landlords paying Income Tax. GOV.UK says UK resident and non-UK resident companies are not affected and continue to get relief for interest and other finance costs in the usual way.
For individual landlords, mortgage interest and other residential finance costs are not deducted from rental income. Instead you get a tax reduction at the basic rate of Income Tax, currently 20%, and that reduction cannot be used to create a tax refund. From 6 April 2027, the reduction in England, Wales and Northern Ireland will be given at the property basic rate of 22%.
A company that lets residential property pays Corporation Tax, and HMRC's manual explains that companies deduct interest under the loan relationship rules when working out their profits. That difference is one reason some landlords compare holding property personally with holding it through a limited company. Whether a company suits you depends on your wider position, so get advice before changing how you own property.
Read next
Sources
- GOV.UK: Income Tax when you rent out a property: working out your rental income
- GOV.UK: PIM2052, Deductions: interest: overview
- GOV.UK: Change to tax rates for property, savings and dividend income, technical note