How To Pay Less Tax On UK Property: In a recent video, I give you my top tax hacks I've used to legally lower my tax bill on my properties in the UK.
In the video, I explain how to pay less tax on UK property. These are ideas that you can take to your accountant, to see if they could work in your unique circumstances.
You can watch the full video at the top of this page, or on my YouTube channel. If you are worried about the huge tax burden placed upon UK landlords, make sure to watch this one until the end.
The video and this article are not financial or tax advice, but rather a simplified summary from my perspective as an investor. Always seek advice from a professional before taking any action.
In this article, I will give you 10 ways to save on your UK property tax! This will get you thinking about how to start your tax planning journey, and what sort of questions you should bring to your accountant!
If you find this article useful, please consider sharing it on social media. That way, we can help ordinary people to start understanding tax, the same way the rich do!
1. How To Pay Less Tax On UK Property Using Purchase Option Agreements!
Lease a property with an option to buy, this avoids having to pay stamp duty until you actually buy the property many years down the road!
2. Commercial Property Rates Vs Residential!
Buy commercial or mixed use property. This could be hotels or a building with both residential accommodation and shops. This type of property attracts a lower commercial rate of stamp duty.
3. Buying Via Limited Companies!
If you buy a property in your personal name, you can’t claim the mortgage interest as tax-deductible. If you buy via a limited company, you can! Sometimes it still makes sense to buy in your personal name, so seek professional advice before going forward.
4. How To Pay Less Tax On UK Property Using The Rent A Room Scheme!
Particularly helpful if you are just getting started, you can rent a room in your own home and earn up to £7,500 tax-free!
5. Refinancing Rather Than Selling!
Rather than selling your properties, or paying down the mortgage, refinance. Refinancing is debt, so you are not taxed on it.
6. VAT Reduction!
If a house has been empty for over 2 years, it may be possible to reduce the VAT on the refurbishment from 20% to 5%!
7. How To Pay Less Tax On UK Property By Employing Your Family!
You can hire your spouse, and teenage children to work for your property company. They must be doing actual work for the business, and you will need to follow the laws regarding employing children, but this can be extremely tax-efficient!
8. Investing In Commercial Property With A SSAS Pension!
Use a Small Self-Administered Scheme (SSAS) pension to invest in commercial property in a tax advantaged way!
9. How To Pay Less Tax On UK Property By Buying The Company, Rather Than The Properties!
Buying a company that owns properties, rather than the properties themselves, can massively reduce your tax bill. Make sure to work with a professional on this, to ensure there are no hidden issues with the company.
10. Get A Great Accountant!
Many accountants will not tell you about ways to save on tax, unless you ask them about specific strategies directly. Find an accountant who actively wants to find ways to save you money!
How To Pay Less Tax On UK Property: Make The Money First!
Now you know how to pay less tax on UK property. However, if you don’t currently have a massive property portfolio, you need to learn how to make the money in the first place!
Luckily, I can show you how! Join me at my next introductory online training event!
We have different online trainings throughout the year, each teaching different things. Here is a sample of what you could learn on one of our online introductory webinars:
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The SECRETS to becoming a successful property investor
Get immediate and actionable insights to accelerate your property investment journey.
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How to LEVERAGE other people's money to get started
Begin to understand the strategies to use to reduce the barriers to getting started.
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How to FIND fantastic property opportunities
Understand where property professionals source the best deals.
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How to RECYCLE your money again and again
Don't just do it once, repeat the process to build your property portfolio.
Property investing is not just for the rich! Learn the strategies that thousands of people have used to not only start investing, but become financially free! Tickets are free, so book your property training webinar now. If you are ready to take action, I hope to see you very soon!
