Expenses and reliefs (1 to 5)
- Claim all allowable costs: agent fees, insurance, repairs, certificates, accountancy, software, travel. See the full list.
- Replacement of domestic items relief for like-for-like furniture and appliances.
- Finance costs: make sure all mortgage interest and fees are reported for the Section 24 credit, and carry forward any unused amounts.
- Property allowance (£1,000) if your costs are tiny, or Rent a Room (£7,500) for lodgers in your home.
- Losses: property losses carry forward against future property profits. Don't lose track of them.
Timing (6 and 7)
- Repairs before 6 April 2027. Genuine, needed repairs paid in 2026/27 are relieved before the rates rise.
- Time sales for a lower-income year to keep more of a gain in the 18% CGT band.
Your tax bands (8 to 10)
- Personal pension contributions extend your basic rate band and reduce adjusted net income. That helps keep profit out of 44%, protects your Personal Allowance above £100,000 and reduces the Child Benefit charge.
- Gift Aid donations extend your basic rate band in the same way.
- Salary sacrifice (if your employer offers it) lowers your other income, leaving more basic band for rent.
Ownership and structure (11 and 12)
- Spouses and civil partners: income is split 50:50 by default, or by real ownership with Form 17. Moving income to a lower-rate spouse can save 20 points.
- A limited company for future purchases may suit higher-rate landlords. Moving existing property is costly. Read company vs personal and take advice.
What to avoid
Schemes promising to remove Section 24 or CGT through complex trusts or partnerships attract HMRC attention. Not declaring rent is tax evasion. If you've missed income, use the Let Property Campaign.
Frequently asked questions
What is the most effective way to reduce rental income tax?
For many higher-rate landlords, pension contributions and claiming every allowable expense make the biggest legal difference. Ownership changes between spouses can help where they reflect reality.
Sources
- GOV.UK: Work out your rental income when you let property
- GOV.UK: Tax relief for residential landlords, how it's worked out
- GOV.UK: Declare beneficial interests in joint property and income (Form 17)
- GOV.UK: Tax-free allowances on property and trading income
- GOV.UK: High Income Child Benefit Charge
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.
This guide explains general rules for individual landlords in England, Wales and Northern Ireland. It isn't personal tax advice. Check GOV.UK or speak to a qualified adviser before you act.