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Reducing Tax on Buy-to-Let Legitimately

Claim everything allowable, and plan the structure.

Reducing Tax on Buy-to-Let Legitimately Property Investment & Wealth Building

Updated October 2026 · Fraser Bond

Tax · Landlords

Reducing landlord tax legally

Allowableexpenses
20%finance credit
Replacementrelief
Recordsmatter
In short: There are no secret loopholes, but landlords often overpay by not claiming what's allowed. Allowable expenses include letting and management fees, repairs and maintenance, insurance, ground rent and service charges, accountancy and some travel. Individuals get a 20% tax credit for mortgage interest. Replacement of domestic items relief covers replacing furniture and appliances. Splitting income between joint owners, using a company for new purchases, and timing disposals can also help. Keep good records, especially with Making Tax Digital starting for landlords, and take professional advice; HMRC challenges aggressive schemes.

Frequently asked questions

Can I deduct mortgage interest?

As a 20% credit for individuals; fully for companies.

Are improvements deductible?

Not against income, but they can reduce CGT.

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