RK INVESTING
With rising operating costs and tighter profit margins, tax efficiency has become one of the most powerful tools for UK property investors in 2025. A smart tax strategy can significantly improve net yield, protect cashflow, and support long-term scaling.
1. Using SPVs to Optimise Mortgage Relief & Liability
Section 24 continues to challenge individual investors. Limited company SPVs can restore mortgage interest relief, help manage liability, and support portfolio growth more sustainably.
Tip: Ensure proper bookkeeping and separate accounts for each SPV to simplify tax filings and strengthen compliance.
2. Leveraging Allowable Expenses & Capital Allowances
Many investors under-claim legitimate costs such as maintenance, insurance, travel, and replacement of domestic items. Capital allowances on eligible assets can further reduce taxable profit.
Tip: Keep digital records of every invoice—small expenses compound into significant tax savings across a portfolio.
3. Planning for CGT & Exit Strategies
As Capital Gains Tax rates evolve, aligning your disposal strategy with market cycles and personal allowances can improve long-term returns. Consider the timing of sales and potential use of rollover relief in development scenarios.
Tip: Review exits annually. Even if you don’t plan to sell soon, planning ahead allows more flexibility and control over tax outcomes.
Conclusion
Tax efficiency isn’t just an add-on—it’s a key component of a resilient investment strategy. With shifting legislation, the most successful investors will be those who stay proactive and informed.
RK Investing supports investors in structuring deals properly, understanding tax implications, and building portfolios strategically for 2025 and beyond.