How To Save Tax On Your Property Income

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When was the last time you thought about how to save tax on your property income? Are you using the same system that you set up several years ago in the boom years without change? We have had a new government and plenty of new rules surrounding property investing and trading since then.

One of the sure fire ways to lose a lot of profit on your rental or development income is by paying too much tax. Tax can wipe out profits. Now, some folks feel that just having a good accountant is enough. But, there are good and bad accountants, and then, there are ways to mitigate tax on your property income that don’t even require an accountant.

So, How Can You Save Tax On your Property Income?

If you have read any of our other pages here, you will know that one of the best and little known ways to save big tax money on any form of self employed income is by use of a specialised income trust, or, if your property income and asset base is big enough, via a Fiduciary trust. One of the things that continually frustrates me about many investors is their mindset around change. Another ( cheaper ) Trust for those who are asset rich but cash poor is an Asset Trust, which you can even finance the set up costs for! Not seeking out ways to improve your tax situation by keeping abreast of government changes can cost you a lot of profit. And this is true of any business, not just property. When governments are skint, there main focus to get cash will be your pocket. Fact.

Lets start with the big one: Fiduciary Trust

Without question, if you have made your wealth and want to protect it from the grasping fingers of the tax man, a Fiduciary Trust is a bullet and bomb proof way to protect all your assets AND your income from excessive tax for life, and, for the life of your descendants/ beneficiaries. These trusts have been in existence for over 20 years and regularly pass scrutiny by HMRC. In fact they have never even been challenged in court.

The trust ring-fences all your assets and earnings. Which means, you won’t need an accountant either, because they are fully managed. Which is why accountants don’t generally recommend them.You can read more about it or download the free pdf here.

How Save Tax On Your Income

So, an income trust is like the younger brother of the Fiduciary Trust. Rather than protecting your assets and your income, it just protects just your income. For example; if you have a portfolio of properties which is pulling in a sizable income, then you can save huge amounts of tax using this system. And it’s not just property income, it’s any form of self employed earnings which can be protected.

In case you are thinking these trusts are dodgy and would be classed as “avoidance or evasion”- they’re not, and they won’t. The top barristers in the UK developed and administer these systems around a fully legal and compliant framework. They are robust, and they work. If you are curious and want to know more about how you can save tax on your property ( or other) income for life, and never have to worry about it again. check out our free video and free PDF’s.

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