Section 24 Mitigation
Section 24 replaced your mortgage interest deduction with a flat 20% tax credit in 2020. For higher-rate Harrow landlords with leveraged portfolios, the annual cost now runs to £3,000–£9,000 per property. We match you with a specialist who calculates your exact exposure and chooses between the three mitigation routes that actually work.
Why a specialist matters here
Most Section 24 advice defaults to 'incorporate your portfolio'. That is sometimes right and frequently wrong — SDLT on transfer, CGT on disposal, and the extraction cost of getting money back out can destroy the headline tax saving. A proper specialist models all three mitigation routes against your actual numbers before recommending one.
The three problems a general accountant won't catch
You pay tax on revenue, not profit
Section 24 taxes your full rental income before mortgage interest. If your gross rent is £24,000 and your mortgage interest is £14,000, HMRC still taxes you as if you made £24,000 — then gives back a 20% credit. Higher-rate landlords end up paying income tax on money that went straight to the lender.
The damage is cumulative
Section 24 phased in between 2017 and 2020 and has been at 100% since. Each year you stay in personal name at higher rate, the arithmetic gets worse — especially as interest rates rise and the credit stays flat at 20%.
The wrong fix is worse than no fix
Incorporating without modelling the SDLT surcharge, CGT on transfer, and extraction costs is the single most expensive mistake Harrow landlords make. The break-even is usually 5–10 years and depends entirely on your specific portfolio.
What the specialist delivers
Exact exposure calculation
Not an estimate. Your actual Section 24 cost this tax year and projected across the next five, based on your real rents, mortgages, and marginal rate.
Three-route comparison
Income restructuring, phased SPV incorporation, and portfolio restructuring — modelled side by side against the status quo. You see the numbers, not a sales pitch.
Implementation roadmap
If incorporation wins, the specialist plans the transfer sequence, SDLT management, and CGT deferral strategy. If income restructuring wins, spousal transfers and timing are drafted.
Ongoing filing & monitoring
Annual self-assessment that correctly handles the mortgage interest credit, plus quarterly check-ins as rates and rules change.
Section 24 in specific Harrow areas
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