Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.

Minimising taxes is one of the easiest ways to boost your property profits. Here are seven tips to help you…

1) Claim Costs as Revenue Expenses

In the current climate, where possible ensure that expenses are deductible as revenue expenses, as they will minimise your income tax. For example, the cost of replacing single glazed windows with double glazed windows can be claimed as a revenue expense.

2) Claim ‘ALL’ Property Expenses

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If you have made any expenditure then make sure that you keep a permanent record of it, so it isn’t overlooked when you come to claim it as an expense. It doesn’t matter how small or large the expense is and remember the Tesco strap line…’Every Little Helps’!

3) Timing Can Be Everything

Record low interest rates have led to many more landlords making a profit on their rental income. If this is the case then you could end up with a hefty tax bill even after all your expenses have been paid. So to help minimise your tax burden, consider making some ‘repairs’ in the same tax year to bring down the tax bill.

4) Avoid Capital Gains Taxes

If you can, always consider letting out a property that has previously been your main residence. It is the simplest and most effective way to avoid capital gains tax!

5) Make Sure You Register Any Rental Losses

If you have made losses in the previous tax years then by registering them with HMRC you will be able to carry them forward indefinitely and offset them against future profits.

6) Using Your Car for Your Property Business?

If yes then you will need to apportion the cost of the car between business and private travel each tax year. If your total miles for the year are 12,000, for example, and your property related trips total 2,000 miles, you can claim 2/12 of your car costs e.g. road tax, servicing, insurance, MOT etc.

7) Switch Property Ownership with Your Spouse if they are Lower Rate Taxpayers

If you have a spouse who is a lower rate (or even nil rate) taxpayer and you are a higher rate taxpayer, consider moving the greater portion of the property ownership into their name.

Article Provided by – Tax Insider

Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.


  1. My wife and i considering on purchaseing a property to let and receive income
    I am a 20% uk tax payer and My wife is a none tax payer with a income of £5.500
    Should we buy the property in joint names
    Should the property be purchased in the wifes name as she is a none tax payer to save on taxation

  2. I\’m not sure but will comment when I have the answer as I too need to clarify this situation. It has confused me as we needed to place the mortgages in joint names to secure the funding but it now seems we can change the ownership details (we are married) to pay less tax!

    Hopefully this is the case and once I know I will be happy to share.


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