UK Real Estate Tax Deductions Guide: Save More on Your Investments in 2025

For property investors in the UK, understanding tax deductions is crucial for maximizing profits and reducing costs. In 2025, knowing what you can claim back can make a significant difference to your bottom line.

Key Tax Deductions for Property Investors

• Mortgage Interest: You can claim relief on a portion of your mortgage interest, now applied as a basic-rate tax credit.

• Repairs and Maintenance: Costs for keeping your property in good condition (not improvements) are deductible.

• Agent Fees and Management Costs: Letting agent fees, property management charges, and accountant fees are all allowable.

• Utilities and Council Tax: If paid on behalf of tenants during void periods, these are deductible expenses.

• Insurance Premiums: Landlord insurance, including building, contents, and liability coverage, can also be offset against rental income.

Capital Gains and Allowances
When selling a property, Capital Gains Tax (CGT) applies, but you may qualify for allowances and reliefs that reduce your tax bill. It’s essential to plan ahead to take full advantage of these.

Why It Matters in 2025
With ongoing regulatory changes, staying informed helps investors optimize their tax strategy and avoid unexpected costs.

At TrustPoint, we work with tax professionals to help our clients navigate the UK property tax landscape and keep more of their rental income.