Tax Saving for the Property Investor

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A Tips & Advice book about... 

In a nutshell

This book suggests 100% legal and legitimate ways to save tax on your property investments. Fully updated with 2023/24 tax year figures and the latest rules, it covers all the relevant tax breaks. Whether you're a seasoned investor or a first-time buyer, this book will ensure you're able to choose the most appropriate tax-saving strategy for your situation.

In detail

Written by property tax experts, this book considers how all the relevant taxes come together. It’s split across four sections containing a stack of ready-to-use tax-saving strategies:

1. Rental income
   • Maximising expenses claims
   • Making full use of rental losses
2. Property disposals
• Using private residence relief
• Gifting properties
3. Buying strategies
• Joint ownership
• Owning properties through a limited company
• Investing in commercial property
4. Overseas properties

nvesting in property - both residential and commercial - still offers the potential for sizeable returns. But where there’s an opportunity to make profits, HMRC will try to grab a slice. This book provides you with a series of tax-saving strategies to keep HMRC’s take to an absolute minimum. Plus, you’ll also get handy documents and tools to support your claims for tax relief.

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We've created this Tips & Advice Book especially for... 

Professional and amateur property investors (residential and commercial) that want to:

• Take full advantage of the tax loopholes
• Keep HMRC's take to an absolute minimum

Tax advisors and accountants that want to:

• Help their clients choose the most appropriate property investment strategy for their situation

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You'll get the following free extras with this Tips & Advice book... 

An online service with ready-to-use documents

• To immediately apply our advice and solutions in practice
• That you can easily adapt to suit your own requirements

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In this This & Advice book you'll read about...

Part 1 -  Avoiding tax on rental income

1. Rental income - the tax basics

1.1. Income tax rates

1.2. How do I work out rental profits (or losses)?

1.3. Which tax returns must I complete if I have rental income?

1.4. Rent-a-room relief

2. Reduce your rental income by maximising expenses

2.1. What costs can I deduct from my rental income?

2.2. Interest and other financing costs

2.3. Structural repairs and maintenance costs

2.4. Renewing fixtures and fittings

2.5. Renewing furnishings and equipment

2.6. Capital allowances

2.7. Travelling costs

2.8. Pre-letting expenses

2.9. Legal and professional costs

2.10. Costs of services provided, including wages

2.11. Other expenses

3. Making the most of your rental losses

3.1. What is a rental loss?

3.2. Furnished holiday lettings

Part 2 - Saving tax on property disposals

1. Capital gains - the tax basics

1.1. What is capital gains tax?

1.2. Reduce the gain by claiming all allowable costs

1.3. CGT-avoidance strategy - don’t sell, just re-mortgage

1.4. Allowable losses

1.5. CGT-avoidance strategy - offset stock market losses against the property gain

2. Avoid CGT by using private residence relief

2.1. Private residence relief (PRR)

2.2. Private letting relief

2.3. CGT-avoidance strategy: live and let not buy to let

2.4. CGT-avoidance strategy: let and live

2.5. CGT-avoidance strategy: nominate/flip a residence

2.6. Selling land that is part of my main residence

2.7. Making use of children’s tax allowances

3. The tax implications of gifting properties

3.1. Avoiding CGT when transferring property to someone other than a spouse or civil partner

3.2. How to avoid CGT on gifts of holiday homes

3.3. CGT-avoidance strategy - don’t gift the holiday home, sell it at undervalue

3.4. Using trusts to avoid CGT

3.5. Tax-avoidance strategy - using trusts to defer CGT on residential property gifts

3.6. Inheritance tax on lifetime gifts

3.7. IHT (and CGT) avoidance strategy: equity release

3.8. Tax-avoidance strategy: transfers to spouse

3.9. The main residence nil rate band (RNRB)

Part 3  - Buying strategies to avoid tax

1. Buying a property in joint names

1.1. Joint ownership with a spouse

1.2. How do I transfer part of a property to my spouse?

1.3. Joint ownership with someone other than my spouse

2. Owning properties through a limited company

2.1. What is a limited company?

2.2. How is rental income taxed in a limited company?

2.3. How are capital gains taxed in a limited company?

2.4. How do I take money out of a limited company?

2.5. Advantages of using a limited company

2.6. Disadvantages of using a limited company

2.7. So should I buy a residential property through a limited company?

2.8. Using a property management company

3. Investing in commercial property

3.1. Why should I invest in commercial property?

3.2. Can I take advantage of business asset disposal relief?

3.3. Should my company’s premises be owned by me or the company?

3.4. Do I have to charge VAT on the rent?

3.5. Tax-saving strategy: use a pension scheme to buy a commercial property

3.6. How do I set up a pension scheme?

3.7. Capital allowances

3.8. Can I claim capital allowances on the fixtures present when I buy the property?

4. Other tax considerations when buying an investment property

4.1. Should I take out an interest-only or a repayment mortgage?

4.2. Stamp duty land tax (SDLT)

4.3. SDLT on leases

Part 4  - Overseas property tax issues

1. Moving overseas

1.1. Can I avoid tax by moving overseas?

1.2. Can I also avoid income tax if I’m non-resident?

2. Investing in overseas property

2.1. Why invest in overseas property?

2.2. How is overseas rental income taxed?

2.3. How are capital gains on overseas properties taxed?

2.4. What are the inheritance tax implications of owning overseas property?

2.5. Should I set up a limited company to invest in overseas property?

2.6. Are there any other taxes that I need to consider?