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Tax Planning For The Property Investor

2020 / 2021


1. Loan interest relief is no longer available on let properties as a deduction. However it is still an allowable expense for Companies

2. You can rent a room in your own home and the first £7,500 of rent receivable per year is tax free.

3. If moving home, consider letting your old home instead of selling it, as selling it a few years later, will protect you from Capital Gains Tax.

4. An allowance of £1,500 per residential let property is available if installing insulation.

5. If you are a higher rate tax payer and your spouse/ civil partner a lower rate tax payer, it might be beneficial to buy your property in joint ownership with your spouse/ civil partner which may reduce your joint income tax on the rental income and Capital Gains tax to a lower rate.

6. If you rent a house in which you have lived, you may be protected from capital gains tax when it is eventually sold. The last 9 months will also be exempt, even where it was still let.

7. Be aware that stamp duty land tax (SDLT) is payable on the purchase of properties over £125,000, and that the rates increase at different purchase prices or valuation.

8. Pre letting expenses can be claimed as long as they are within the rules.

9. Ensure you make full use of your losses from the let properties.

10. You may pay a wage to your partner for the administration of your let property as long as they do not own a part of the property and are actually providing services such as finding tenants, inventories, checking in / out, preparation of accounts and record keeping etc.


The information in this publication is by no means exhaustive and is of a general nature for guidance purposes only and as such, we strongly recommend that you obtain professional advice and consult the latest legislation relating to your specific circumstances before taking any action.

We do not provide any warranty that the information is reliable, complete and up to date. As such professional advice must be taken before acting or refraining from acting on any of the above.

We do not accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the material contained in this publication.


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