30. May 2026
What Expenses Can Landlords Claim Against Tax? (UK Guide 2026)
Reduce your tax bill legally by understanding what expenses you can claim as a landlord.
Owning a rental property can provide a steady source of income, but it also comes with ongoing costs.
The good news is that many of these expenses can be deducted from your rental income before tax is calculated, helping landlords reduce their overall tax liability.
Understanding what counts as an allowable expense is essential for staying compliant with HM Revenue and Customs while ensuring you're not paying more tax than necessary.
In this guide, we'll explain exactly what UK landlords can claim against tax, what cannot be claimed, and how to keep accurate records for your tax return.
What Are Allowable Expenses?
Allowable expenses are costs incurred wholly and exclusively for the purpose of running your rental property business.
These expenses can be deducted from your rental income, meaning you only pay tax on your profit rather than your total rental income.
Common Tax-Deductible Expenses for Landlords
1. Letting Agent Fees
If you use a letting or property management company, you can normally claim:
- Tenant-find fees
- Management fees
- Inventory fees
- Referencing costs
- Rent collection charges
These are considered legitimate business expenses for landlords.
2. Maintenance and Repairs
Routine maintenance and repairs are generally tax deductible.
Examples include:
- Fixing a leaking tap
- Replacing broken locks
- Boiler repairs
- Roof repairs
- Repainting between tenancies
- Replacing damaged flooring
However, major improvements are usually treated differently (see below).
3. Landlord Insurance
Insurance policies related to the rental property can usually be claimed, including:
- Buildings insurance
- Contents insurance
- Landlord insurance
- Rent guarantee insurance
- Public liability insurance
These costs are considered part of operating the property business.
4. Utility Bills
If the landlord pays for utilities, they may be allowable expenses:
- Gas
- Electricity
- Water
- Broadband (if included)
- Council Tax during void periods
This commonly applies to HMOs, serviced accommodation, or bills-inclusive tenancies.
5. Ground Rent and Service Charges
Leasehold landlords can generally claim:
- Ground rent
- Service charges
- Communal maintenance charges
Provided they relate to the rental property.
6. Legal and Professional Fees
Certain professional fees may be deductible, including:
- Accountant fees
- Tax return preparation costs
- Legal fees relating to tenancies
- Lease renewal costs (under qualifying limits)
Professional advice relating to the day-to-day running of the property business is usually allowable.
7. Advertising and Marketing
Finding new tenants often involves marketing costs such as:
- Property portal advertising
- Social media advertising
- Photography
- Tenant-finding services
These costs can usually be claimed against rental income.
8. Cleaning and Gardening
If you pay for property upkeep, these costs may qualify:
- End-of-tenancy cleaning
- Regular cleaning services
- Garden maintenance
- Window cleaning
Especially when provided as part of the tenancy agreement.
9. Replacement of Domestic Items Relief
Landlords can claim tax relief when replacing items such as:
- Beds
- Sofas
- Carpets
- Curtains
- Fridges
- Washing machines
- Crockery and cutlery
The relief generally applies to replacements rather than initial purchases for a newly furnished property.
Can Landlords Claim Mortgage Interest?
This is one area that often causes confusion.
For individual landlords:
- Mortgage interest is no longer deducted in the traditional way.
- Instead, landlords generally receive a basic-rate tax credit on qualifying finance costs.
For limited company landlords:
- Mortgage interest can usually still be treated as a business expense.
The rules can be complex, particularly for higher-rate taxpayers.
What Landlords Cannot Usually Claim
Certain costs are not normally considered allowable expenses.
Examples include:
❌ Buying a property
❌ Property extensions
❌ Loft conversions
❌ Major renovations that improve the property
❌ Personal expenses
❌ Capital repayments on mortgages
These are generally treated as capital expenditure and may instead be relevant when calculating Capital Gains Tax upon sale.
Keep Accurate Records
Good record keeping is crucial.
Landlords should retain:
- Invoices
- Receipts
- Bank statements
- Tenancy agreements
- Mortgage statements
- Insurance documents
- Utility bills
Accurate records make completing tax returns easier and provide evidence if HMRC requests information.
Property Allowance vs Claiming Expenses
Some landlords may qualify for the £1,000 Property Allowance.
In certain situations, claiming the allowance may be simpler than claiming actual expenses.
However, landlords with significant costs often benefit more from deducting their genuine allowable expenses instead.
Comparing both options each tax year can help determine the most tax-efficient approach.
Key Takeaways
✔ Letting agent fees are usually deductible
✔ Repairs and maintenance can normally be claimed
✔ Insurance premiums are allowable expenses
✔ Utility bills paid by the landlord may qualify
✔ Professional fees can often be deducted
✔ Replacement furniture and appliances may qualify for tax relief
✔ Major property improvements are usually not deductible against rental income
✔ Good record keeping is essential
By understanding allowable expenses and keeping organised records, landlords can significantly reduce their taxable rental profits while remaining fully compliant with HMRC rules.