I own 12 buy-to-lets and earn six figures. AIBU to want to cut my tax bill?

MidnightPatrol · 19/09/2026 22:03

I just cannot think of anything worse than having a full time job AND being responsible for 12 lots of tenants.

It’s madness really, I can’t believe how widespread the landlording epidemic is.

OneOpalOwl · 19/09/2026 22:01

EntirelyUnnecessary · 19/09/2026 20:45

True, but they are intended to fund retirement - not to be gifted. They get very generous tax treatment (income tax deductions when money is added to the pension and tax-free growth) because it's in the government's interest to ensure that people have enough saved up for retirement. If people are gifting their pensions away it defeats the purpose.

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I am a tax adviser so I am at least happy about the change on a professional level since it keeps me busy for another wee while 🙂

sanityisamyth · 19/09/2026 21:41

BasilPestoSalad · 19/09/2026 20:29

I'm fully on his side

Multiple times! Are you the OP under a different name?!

MeetMeOnTheCorner · 19/09/2026 21:38

He needs to gift them and live for 7 years. Houses are not pensions. There’s capital gains if you pass them on or sell them. They are not under a pension umbrella. They are a business.

MustTryHarderAndHarder · 19/09/2026 21:25

Coconutter24 · 19/09/2026 20:56

I don’t think they were joking I think they were pointing out what the telegraph might be thinking… that’s why I asked how would it help his family which he wants to do

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There is no way the Telegraph would suggest he leaves his rental properties to charity when he has children who he wants to leave an inheritance to!

Coconutter24 · 19/09/2026 20:56

MustTryHarderAndHarder · 19/09/2026 20:27

She was joking.

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I don’t think they were joking I think they were pointing out what the telegraph might be thinking… that’s why I asked how would it help his family which he wants to do

EntirelyUnnecessary · 19/09/2026 20:45

OneOpalOwl · 19/09/2026 20:27

I guess my biggest issue is that you can only pass on pension pots when you die, any other asset can be gifted in lifetime.

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True, but they are intended to fund retirement - not to be gifted. They get very generous tax treatment (income tax deductions when money is added to the pension and tax-free growth) because it's in the government's interest to ensure that people have enough saved up for retirement. If people are gifting their pensions away it defeats the purpose.

Tsubasa1 · 19/09/2026 20:38

Can someone summarise the article please?

ilovesooty · 19/09/2026 20:34

BasilPestoSalad · 19/09/2026 20:29

I'm fully on his side

So you said.

BasilPestoSalad · 19/09/2026 20:29

I'm fully on his side

MustTryHarderAndHarder · 19/09/2026 20:27

Coconutter24 · 19/09/2026 20:16

How will that help with passing down his wealth to his family?

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She was joking.

OneOpalOwl · 19/09/2026 20:27

EntirelyUnnecessary · 19/09/2026 20:17

Well the problem was that when they weren't in scope rich people could just stuff lots of money into pensions and fund their retirement through other means (eg living off rental income) and pass on their enormous pension without paying IHT.

The pension money is still getting passed on, I don't see why it shouldn't be taxed the same way as passing on any other property 🤷🏻‍♀️

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I guess my biggest issue is that you can only pass on pension pots when you die, any other asset can be gifted in lifetime.

Coconutter24 · 19/09/2026 20:20

Telecone · 19/09/2026 19:08

If he engages that tiny brain of his then maybe he'll realise that people avoiding tax is why the UK might be struggling. Idiot.

He probably doesn’t have a tiny brain being in the position he’s in. The UK is not struggling because of people not paying tax, if the UK government weren’t so greedy with tax things would probably be a lot better

EntirelyUnnecessary · 19/09/2026 20:17

OneOpalOwl · 19/09/2026 19:58

I mean.. the article isn’t saying very much at all tbh, but it’s more about the upcoming changes to IHT that will bring pensions into scope than tax charges on his rental properties. The title is very clickbaity.

I personally think the decision to bring pensions into IHT was daft.

Well the problem was that when they weren't in scope rich people could just stuff lots of money into pensions and fund their retirement through other means (eg living off rental income) and pass on their enormous pension without paying IHT.

The pension money is still getting passed on, I don't see why it shouldn't be taxed the same way as passing on any other property 🤷🏻‍♀️

Coconutter24 · 19/09/2026 20:16

ThreeFeetTall · 19/09/2026 19:10

I think it is advantageous from a tax position to gift all your buy to let properties to charity. Another bonus is no pesky regulations to abide with. The charity will then be able to let them out at reduced rates to those in need. Win win win win situation.
I can’t read behind the telegraphs paywall but I guess this is what they are suggesting, right??

How will that help with passing down his wealth to his family?

BasilPestoSalad · 19/09/2026 20:00

I'm fully on his side

OneOpalOwl · 19/09/2026 19:58

I mean.. the article isn’t saying very much at all tbh, but it’s more about the upcoming changes to IHT that will bring pensions into scope than tax charges on his rental properties. The title is very clickbaity.

I personally think the decision to bring pensions into IHT was daft.

BasilPestoSalad · 19/09/2026 19:53

Telecone · 19/09/2026 19:08

If he engages that tiny brain of his then maybe he'll realise that people avoiding tax is why the UK might be struggling. Idiot.

His brain is not tiny at all given he's worked really hard and had a successful career.

The largest component of the tax gap is illegal evasion actually. And it's mostly done by sole traders and SMEs.

BasilPestoSalad · 19/09/2026 19:43

I do unironically agree with. He's studied well and worked hard for over 40 years and wants to enjoy the fruits of his labour. Anyone would minimise their tax bill if they could.

ilovesooty · 19/09/2026 19:42

🙄

Treetreetreetree · 19/09/2026 19:38

I own 10 flats and I don’t get snark from my tenants.
Sadly I’m slowly selling because the new legislation means it’s impossible now to be a landlord. I’ve never had complaints from tenants,I respond to problems quickly.
The heartbreaking thing is that some of my tenants have been with me for over 25 years and I am selling their homes.
I know people hate so I would imagine everyone will be pleased so many of us are selling up.

vodkaredbullgirl · 19/09/2026 19:23

🤔

ThreeFeetTall · 19/09/2026 19:10

I think it is advantageous from a tax position to gift all your buy to let properties to charity. Another bonus is no pesky regulations to abide with. The charity will then be able to let them out at reduced rates to those in need. Win win win win situation.
I can’t read behind the telegraphs paywall but I guess this is what they are suggesting, right??

Telecone · 19/09/2026 19:08

If he engages that tiny brain of his then maybe he'll realise that people avoiding tax is why the UK might be struggling. Idiot.

Bluffinwithmymuffin · 19/09/2026 19:05