I have a client with a portfolio of 12 properties. Over the last 2 to 3 years the properties overall have started to generate a reasonable net income of about £20k PA. He also has a healthy employment salary of around £100k PA and not only is the net rental income attracting 40% tax, it's also reducing his personal allowance altogether. The problem is, his partner to whom he lives with (not married) only has a very small salary - barely enough to even use her personal allowance each year! I was wondering if there was a way to divert the rental income through some form of Property Management Company if I were to appoint them both as directors and shareholders, in order to divert at least some of the income to the partner, by way of an additional salary or dividend to reduce the overall tax charge? The properties are all currently in his name, would this need to change? Some advice on this would be gratefully received!