Managing your property portfolio tax efficiently

Managing your property portfolio tax efficiently

Property can be complicated so our property tax experts are here to navigate you through the rules and regulations. We will help you get your affairs structured properly and in the most tax efficient manner.

Tax Efficient Property Portfolios

There are tax implications of investing in buy-to-let properties. At Haggards Crowther, we look after a number of experienced investors and those new to the world of property. Whether new or experienced, all need on-going advice regarding their property portfolio as part of their wider investment strategy. We also help those who are new to investing in property and need guidance on the tax implications. Our role varies from guidance and strategic input to calculation and submission of tax returns where property assets from part of the investment income 

Managing Profits and Losses

Many of the expenses you incur in managing the property can be offset against the income in calculating the profit. We can help guide you through the maze of allowances to ensure that the profit is both correctly calculated and accurately disclosed on your tax return.

It is also not unheard of for new investment properties to actually make a loss in the first year. This can largely be due to the costs of refurbishment or setting up tenancy agreements and engaging professional services. Like a profit, a loss should also be disclosed on your tax return as in some cases it can be carried forward to future years and offset against future profits, thereby reducing a future tax liability.

Knowledgeable Property Tax Specialists

Our skillset covers many areas of property asset management, including:

  • How to finance a property purchase tax efficiently.
  • The tax implications of renting furnished or unfurnished, and the rules HM Revenue & Customs (“HMRC”) has for assessing whether a property is furnished.
  • Understanding how HMRC will view the cost of any planned improvements to the property.
  • Considering whether you can take residence in the property before you let it out.
  • Strategic advice about 
  • Considering any tax efficiency that can be derived from co-ownership with your spouse.
  • What tax you should expect to pay when you are considering selling the property.
  • Whether HMRC is likely to consider your property portfolio to be a business rather than an investment, and the different rules that apply.
  • Circumstances under which there may be tax to pay on the sale of your home.

Working with your managing agent

If you have a managing agent, we can arrange to speak to them to discuss your property(ies) and establish a direct line of communication. As a result, we will be able to collect the monthly statements we need for your tax return, one less thing for you to worry about at tax return time.

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