Tax Planning and Financial

1,690 Thanks
5,307 Posts
14 years ago
I would like to recommend the taxcafe website ( as they have a book that covers all this, it is called "How to Avoid Property Tax" by Carl Bayley (you can buy it (softcover by post) and get a free immediate download of it).

Anyway, to answer your question in simple terms, you must tell the revenue how much rent you earnt and you also tell the revenue how much you have spent on running your property portfolio (1 or more properties is a portfolio).

The "spent" part includes mortgage interest payments, home as an office (% of), visiting the property N times per year, fixing this and that, agency fees, gas safety, electrical safety checks, and the list goes on (see Carls excellent book).

I expect you will find that you are running at a loss if you have say an 85% mortgage, but you MUST tell the revenue of everything as it will be carried forward to the next tax year as a loss and so on for years to come.

One day when your property returns to profit you will be able to offset the losses from previous years against those profits in future years.

Get a copy of Carls books, great and easy read and you will be away.

For your information his book is AVOIDANCE (spend your nights in your own bed) and not EVASION (spend your nights in Prison) .

Carl is very clear and direct and gives BIM (government guidance notes) document numbers where things you can claim are maybe questionable. the one thing I like about Carl is he covers everything.

I have about 4 editions of this book on the shelf and buy the new one every single year without fail, best 25 pound I ever spend.



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