10 Tax Saving Tips for Landlords

1. Deposits from your new tenants should be excluded from your property income tax return, so you don’t need to pay tax for them.
2. From sole ownership, transfer a property’s ownership to your partner if they are a low-income earner, and you live together as a married couple or civil partner. This will help lower the income tax rate.
3. Set aside a quarter of your rental income in a savings account each month, so you’ll have the funds to pay come tax time.
4. Reclaim repair costs at every tax year they’re incurred.
5. Claim additional tax relief for properties you let as holiday accommodation in any European Economic Area (EEA) country before April 2010, and which you pay UK tax on the profits.
6. Get expert advice on VAT matters pertaining to lease or purchase of a commercial property, and any transaction that is unusual. On death, sell a property without a sitting tenant, as this will fetch a higher price.
7. Elect a foreign property as your Principle Private Residence (PPR) or Main Residence Release (MRR), so a portion of the gain is safe from UK Capital Gains Tax in the event of a sale.
8. Separate rental account from the personal, and pay all the rents into that account. In the event that a tax inspector asks for proof, you won’t have difficulty providing the documents.
9. Regularly print bank statements if you only use online banking for record purposes. Bank statements may only be accessible online for a limited period.

If you think you may be owed some tax back. Apply here to get your tax back.