Negative gearing occurs when the costs of owning a rental property — including mortgage interest, repairs, management fees and depreciation — exceed the rental income earned. The resulting loss can often be offset against other income, reducing overall tax. Negative gearing is a well-established strategy in Australia, where it is fully available to individual investors. In the UK, rental losses can be carried forward and offset against future rental profits, but cannot generally be set against other income types. Tax rules change periodically, so seek professional advice before relying on negative gearing as an investment strategy.