Tax Planning

How to keep your property portfolio tax-efficient in 2018


Louise Misiewicz

Tax Consultant

15th February 2018

Article relevant to the tax year 2017/18

How can buy-to-let property investors remain tax-efficient during 2018, and what pitfalls are coming up for them?

As a leading property tax expert, I take a significant interest in the developments in the property investment sector for my landlord clients. Many of my buy-to-let property investors look to me and my team of property tax accountants to ensure that their portfolios remain as tax-efficient as possible.

I’ve noticed in the last financial quarter that a lot of property investor clients appear to be looking to invest in Limited Companies as vehicles for growing their property businesses – this remains a sound idea.

Whilst reviewing industry news yesterday, I noted an article discussing how sales from buy-to-let landlords looking to reduce their portfolios would be swelling the Treasury coffers, with billions of pounds being hands over in Capital Gains Tax (CGT) payments. Receipts are expected to rise by 5% to £8.8bn in the current 2017/18 tax year, and surging on to hit £10bn in the next tax year. We discussed how many landlords could avoid paying CGT when they sell a property investment in a previous article.

Whilst many landlords have left the buy-to-let market in light of recent tax changes such as Section 24, mortgage interest relief cap that we discussed in another article, others have sold properties to stabilise values before any potential drops, especially in certain parts of London.

With many property investors recently filing their annual tax returns, many of my clients are acutely aware that CGT can be a liability.

Some of my clients are working in partnership with their spouse to reduce their combined tax bills, taking full advantage of each individual’s CGT allowance of £11,300 by transferring properties between them. This may be done using a deed of trust, which we at Optimise Accountants charge just £199.95. See our other article on deeds of trust in another article.


Download our tax-efficient property investment guide for 2018 here


I advise speaking to a tax accountant beforehand, however, as transferring property between spouses could trigger a stamp duty charge.

Our team of property tax experts are on hand to best advise our property investment clients on how to reduce their tax liabilities and keep their property portfolios as tax-efficient as possible in 2018.

I’ve written a number of relevant articles which would make excellent additional reading, such as:

What structure to use for your property business

Capital Gains Tax from 2017/18 for property investors

Limited Company: the best structure for wealth planning

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