Expenses
Claim your expenses. Expenses such as plumbing repairs, buildings insurance, and landlord’s insurance will be incurred as a landlord throughout a tax year, you may be able to offset these against your rental income to reduce your profits which are subject to tax.
Loan interest relief restriction for Income Tax
Income Tax relief can be claimed on the interest you pay the bank on your mortgage to fund the purchase of the property. You may be due to receive an income tax credit of 20% of the interest paid. Relief is claimed on your self-assessment tax return each year.
SDLT relief
If you are purchasing multiple properties together, Multiple Dwellings Relief which can help to reduce the SDLT due.
When purchasing property, consider whether to put it in your joint names, perhaps with a second person such as a spouse, civil partner, your children (where they are adults), or business partner. The profit is spread for income tax purposes. It may be that they have tax bands available to lower the overall income tax bill.
