There are two reasons for this. It may be because the lower-earner is not using their full personal allowance or because they are in a lower tax bracket. “Similarly, if one of them is a higher-rate taxpayer and the rental property has a mortgage, they may not be getting full tax relief for the mortgage interest, whereas their spouse or civil partner would,” he added. 

Gifting a property to a spouse if it still has a mortgage attached incurs stamp duty – but it could be cheaper to do this now rather than later.

Move properties into a company 

Another option for property investors would be to move their properties into a company structure, which can be more tax efficient. 

They are essentially selling the home to their new company and so, as director of the latter, they would typically have to pay stamp duty at the higher rate on the purchase. 

David Fell of Hamptons said: “Perhaps the biggest benefit is that all mortgage interest can be offset against tax when holding through a company, while from the 2020-21 tax year, just 20pc of mortgage interest can be offset on properties held in a personal name.”

Holding a buy-to-let portfolio within a company structure also comes with income and capital gains tax benefits, which are discussed in the last instalment of this series. 

Mr Fell said there were, however, several hurdles landlords would have to get over before transferring properties to a limited company. “While a company can be set up relatively quickly and cheaply, the property must be sold to the company at market rate, which will require an independent valuation for stamp duty purposes.

“If the property is mortgaged, this transfer will also require the lender’s consent. Some buy-to-let lenders won’t lend to a company, meaning it’s usually best to transfer the property when the mortgage reaches the end of a fixed term.”