What landlords can claim as expenses, and what gets rejected

what property expenses can you claim as a landlord

In England you can claim expenses that are "wholly and exclusively" for letting the property — common allowable items include repairs and maintenance, utilities you pay, buildings and contents insurance, letting‑agent and management fees, and legal or accountant fees. You can also claim the cost of replacing domestic items (furniture, white goods) under the replacement‑of‑domestic‑items relief, but only for replacements, not initial purchases. HMRC separates revenue expenses (deductible now) from capital costs (not deductible) — so repairs are allowable but improvements (extensions, major conversions) are not. For residential landlords mortgage interest does not reduce rental profit directly; it generates a 20% tax reducer on finance costs (see the tax questions below). If your gross rental income is £1,000 or below you may use the £1,000 property allowance instead of itemising expenses.

what expenses can landlords claim uk?

Across the UK (including England) landlords can deduct revenue expenses that are wholly and exclusively for the rental business: routine repairs, utilities and Council Tax you pay, insurance premiums, service charges and ground rent, agent fees, advertising and tenant‑finding costs, and direct costs such as phone or software subscriptions apportioned to the rental. Licence and compliance costs such as HMO licences, gas safety and electrical safety certificates are normally allowable when they are incurred for the letting, and travel or vehicle costs can be claimed to the extent used for the business. Non‑residential property landlords may still deduct mortgage interest as an expense; residential landlords get the 20% finance‑cost tax reducer instead.

what expenses can i claim on a rental property

You can claim everyday running costs for the rental property provided they are wholly and exclusively for letting: repairs (boiler fixes, plastering), utility bills you pay, landlord insurance, agent and management fees, and cleaning or gardening services. You can claim legal fees for short lets (one year or less) and for renewing leases under 50 years. Replacement of domestic items relief lets you claim the cost of replacing an item plus incidental costs minus any proceeds from disposing of the old item — it applies only to replacements that remain for tenant use.

what can i claim as a landlord

You can either claim actual allowable expenses or use the £1,000 property allowance if your gross property income is £1,000 or less; if your gross rental income is over £1,000 you may still elect the £1,000 allowance instead of detailed expenses. Allowable categories include repairs and maintenance, insurance, agent/accountant/legal fees, utilities you pay, advertising and direct letting costs, and replacement domestic items under the special relief. Capital expenditure — improvements, extensions, or the capital element of mortgage repayments — is not deductible as a revenue expense (though it may affect Capital Gains Tax on disposal). Many landlords prefer the allowance because the paperwork can outweigh the tax benefit for small portfolios.

what can landlords claim against tax

Landlords can claim deductible expenses to reduce taxable rental profit and they can also use tax reducers and allowances that reduce tax due. Deductions (repairs, agent fees, insurance, council tax you pay) reduce the rental profit reported on SA105; separately, residential landlords get a basic‑rate tax reducer equal to 20% of allowable finance costs (mortgage interest) which reduces income tax due. There are also statutory allowances such as the £1,000 property allowance and, where relevant, rent‑a‑room relief (up to £7,500) for letting furnished accommodation in your main home.

what can a landlord claim against tax

For an individual landlord the practical outcomes are: 1) claim allowable revenue expenses to lower taxable rental profit on the Self Assessment (SA105); 2) for residential property, claim the 20% finance‑cost tax reducer on mortgage interest rather than deducting interest from profit; and 3) choose the £1,000 property allowance instead of itemising costs if that is beneficial. Non‑residential landlords generally still deduct interest and finance costs against rental profit. Keep clear records and apportion mixed personal/business costs — HMRC allows only the business proportion.

Last reviewed August 2026.