Skip to main content
Skip to navigation
Online4.9/5.0
The HMO Mortgage Broker
LLP

LLP Profit Distribution Calculator

Illustrate each LLP member's income tax and net cash for a profit split you enter.

This calculator illustrates the income tax and net cash for each member when HMO rental profit is split between up to four LLP members in the shares you enter. It is an illustration only, not tax advice, and profit must be shared as the LLP agreement sets out.

Your figures

Figures for the whole LLP for one year, then each member's share and other income.

The LLP

Allowable costs such as bills, repairs, insurance and letting fees. Not mortgage interest.

Interest and other finance costs for the year.

Members
Tax year
Member 1

Salary or pension, before tax.

Member 2

Salary or pension, before tax.

Your results

Total income tax for this split, 2026/27
£15,092
Members keep £12,908 of the £28,000 cash profit after tax

Per member

MeasureMember 1Member 2
Share50%50%
Profit (before interest)£24,000£24,000
Interest£10,000£10,000
Income tax£7,546£7,546
Net after tax£6,454£6,454
Cash profit (rent less costs and interest)
£28,000
Total income tax for this split
£15,092
Net cash kept by members
£12,908
Equal split, for comparison (total income tax)
£15,092

Illustration only, not tax advice. Uses income tax rates for England, Wales and Northern Ireland. Your position depends on your full circumstances; speak to a qualified tax adviser before choosing how to own property.

Profit must be allocated as set out in the LLP agreement. This calculator shows the tax on the split you enter; it does not check whether a split is allowed or how HMRC would view it.

Members are individuals; corporate members are not modelled. Each member's tax is the extra income tax their share adds on top of their other income. Unused finance cost relief is not carried forward here.

Illustrative figures only, based on the numbers you enter. Not a mortgage offer.

How we calculate LLP profit distribution

Methodology and data sources, updated October 2026

Formulas

Member's profit and interest
Profit = (Annual rent - Running costs) × Share %; Interest = Mortgage interest × Share %

Each member's share applies to both the profit and the mortgage interest. Shares must add up to 100%.

Member's income tax
Income tax on (Other income + Profit) - Income tax on Other income alone - Section 24 credit

The profit is taxed on top of the member's own other income at the property income rates for the tax year. Mortgage interest is not deducted; instead there is a basic-rate credit on the lower of the interest, the profit and income above the personal allowance.

Net cash kept
Profit - Interest - Income tax

The member's share of the cash profit after their income tax. The headline adds this up across members.

Equal split, for comparison
Total income tax with each member on 100 ÷ Members % and the same other incomes

Shown for reference only. It is not a suggestion to change how profit is shared.

Data sources

  • Yes:GOV.UK: Changes to tax rates for property, savings and dividend income (November 2025 Budget)
  • Yes:GOV.UK: Income Tax rates and Personal Allowances
  • Yes:GOV.UK: Corporation Tax rates and marginal relief

Key assumptions

Profit allocationIn practice, profit is shared as set out in the LLP agreement. This calculator does not check whether a split is permitted or how HMRC would view it.
As entered
Tax ratesScottish income tax rates are not modelled.
England, Wales and Northern Ireland
Types of incomeEach member's other income is treated as employment or pension income. Savings income and dividends are not included.
Other income and property profit only
Not includedNo pension contributions, Gift Aid, student loans or National Insurance.
Reliefs and deductions
Section 24 carry forwardFinance cost relief that cannot be used in the year is not carried forward.
Not modelled
MembersCorporate members are not modelled.
Individuals only
Limited company comparisonCorporation tax uses the small profits rate, main rate and marginal relief for a single company.
No associated companies