“Flipping” second homes is not just the preserve of penny-pinching MPs. It is possible for mere mortals to do it too, among other ways of using property to reduce a tax bill.

Mainstream flipping involves using “time to sell” rules to avoid capital gains tax (CGT). The latter is not payable when you sell your home if it is your principal private residence (PPR) — the home where you and your family live for most of the time.

The “time to sell” rules were introduced during the last recession to help people who were forced to sell their homes to move to find work. Under the legislation, you can move out of a property and elect it as your tax-exempt principal residence for up to three years, even if you no longer live there and are renting it out to someone else.

But the rules are used not only by those who are moving — small-time property developers who purchase properties, refurbish them then sell them on can also exploit them: they can nominate a property as their tax-exempt residence even if they live in it for only a couple of weeks.

If you sell a second home or an investment property, CGT is usually payable at 18 per cent on any profit over and above your annual CGT threshold of £10,100.

Nominating your property as your main residence may not wipe out your entire CGT liability — the exemption applies only to the gain made on the property since you informed the taxman that it was your PPR, so if you have owned the property for many years, you may still have some tax to pay. Anyone wanting to take advantage of these rules may need to do so soon: in the wake of the MPs’ expenses scandal, the legislation may change to stop future flippers, accountants say.

Unfortunately, the other major property tax — stamp duty — is more difficult to avoid. The tax is payable when you purchase a property with a value of £175,001 or more, this year at least. After December 31 2009, the threshold drops back to £125,000, or £150,000 if you purchase a property in a “disadvantaged area”. At present, stamp duty is payable at 1 per cent for property transactions worth £175,001 to £250,000, at 3 per cent on £250,001 to £500,000, and at 4 per cent for properties worth more than £500,001.

The other way to save money via your property is to take in a lodger. Not only is it a relatively easy way to boost your income, but it is also tax-efficient. Under the Rent a Room scheme, you can receive up to £4,250 a year tax free (or £2,125 per person if you are a couple) from letting a room in your main residence. You do not even have to be the homeowner: if you are renting a house and wish to let a room within the property, you are eligible for the tax break — although you need your landlord’s consent to sub-let.

To qualify for the Rent a Room scheme, you must let furnished accommodation within your PPR.

Your lodger can rent anything from a single room to an entire floor, but if you have converted part of your property into an entirely separate flat, the scheme will no longer apply.

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers