Are You Paying More Property Tax Than You Need To?

At PJCO, we regularly meet landlords and property investors who are unknowingly paying more tax than necessary. The truth is, the UK property tax rules offer legitimate ways to reduce your bill — if you know where to look.

Here are some of the strategies we use to help our clients legally minimise their property tax while staying fully compliant with HMRC.

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1. Allocate More Income to a Lower-Earning Spouse

If you’re married or in a civil partnership and your partner pays tax at a lower rate, you can use a Deed of Trust and Form 17 to shift more property income to them.
This can significantly reduce your overall household tax bill and, in most cases, the transfer is free from Capital Gains Tax (CGT).

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2. Make Use of Tax-Neutral Transfers

Transfers of property between spouses or civil partners are generally CGT-free. This means you can restructure ownership for tax efficiency without triggering a large one-off tax bill.

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3. Maximise Your Annual Exempt Amount

Selling properties in different tax years can let you use more than one Annual Exempt Amount — currently £3,000 per person, per year.
For jointly owned properties, each owner gets their own allowance, which means couples could benefit from £6,000 tax-free gains per year.

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4. Weighing Up Company Ownership

For some landlords, holding property in a limited company can be tax-efficient. However, transferring property from your personal name into a company can trigger Stamp Duty Land Tax (SDLT) — even if no money changes hands.

Remember, HMRC monitors transactions carefully, particularly those designed solely to avoid tax. Tax planning should always balance efficiency with full compliance.

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Every landlord’s situation is different. The right strategy for you will depend on your income, your property portfolio, and your long-term plans. But with the right advice, you can often reduce your tax bill and protect your property investments.

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Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants. 
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