As interest rates are lowering dramactically i'm finding myself making about £600 profit a month on my property portfolio after interest on the mortgage has been repaid.

Does anyone know if its possible for me to set up a lettings agency so I can charge "lettings fees" against my portfolio to save on tax?

Mel

Hi Mel,

That won't work I'm afraid. The income you paid yourself as the letting agent would be taxable. So both entries would cancel each other out and you would be back to the same position. You would also be creating an additional source of income, requiring an additional supplement on your tax return. So possible additional accountants fees for no gain!

Find a trusted relative that hasn't used up their annual allowance. Or if your partner is on basic rate tax possibly. However, the amounts are small, and it's illegal.