Simulate how your rental investment will work under the Borloo scheme

Under the Borloo tax reduction scheme, you can recoup up to 65% of the purchase price of your new-build rental property over 15 years. Use our simulator to calculate the profitability of your rental investment and see how much tax you could save!

The Borloo scheme entitles you to a further special reduction of 30% on the tax payable on your rental income. This special reduction is in addition to those allowances granted under the general tax regime. The scheme also allows you to deduct between 50% and 65% of the cost of your new-build property (including legal costs) from your rental income, as follows:

• 6% per year of the purchase price in the first 7 years, i.e. a 42% deduction over 7 years,
  
•  4% per year for the next 2 years, i.e. a total of 8%,
  
• You then have the option of committing yourself to two further 3-year periods (6 years in total). These periods offer deductions of 2.5% per year, i.e. 7.5% over 3 years or 15% over 6 years.

In order to benefit from the Borloo tax reduction legislation, your property must be new and be let unfurnished for at least 9 years as the tenant’s principal residence. The rent you charge must not exceed a maximum level set by law. There is also a legal maximum eligibility limit applied to your tenant’s income.
Good to know: the property may not be let to a member of your direct family.

More information about the Borloo scheme