As a landlord in the UK, smart tax planning can help you retain more of your rental income. Here are five tax-saving tips to consider in 2025:
1. Claim All Allowable Expenses
Deduct costs like mortgage interest, letting agent fees, repairs, and insurance to reduce your taxable profit.
2. Use the Property Income Allowance
If your rental income is under £1,000, you might not need to report it. For higher earnings, claim the allowance instead of actual expenses where beneficial.
3. Form a Limited Company
Consider holding properties in a company to benefit from lower corporation tax rates and more flexible tax planning.
4. Maximise Capital Allowances
For furnished properties, claim capital allowances on fixtures, furniture, and white goods to lower tax liabilities.
5. Plan for Capital Gains Tax (CGT)
If you plan to sell, utilise your annual CGT allowance and consider timing sales to minimise exposure.
Need personalised advice? Contact our expert property accountants for a free consultation today.
Keywords: landlord tax tips, UK landlord tax 2025, rental income tax savings, property tax accountant
