landlords · tax
What expenses can landlords claim?
Bowker Accountants Team
A clear guide to allowable landlord expenses — repairs, insurance, agent fees and more — and what HMRC typically won't let you claim.
Getting allowable expenses right is one of the quickest ways to keep your rental tax bill accurate. Claim too little and you overpay; claim the wrong things and you risk a query later.
Common allowable expenses
For residential lets held personally, HMRC generally allows costs you incur wholly and exclusively for the rental business. Typical examples include:
- Letting agent and management fees
- Buildings and contents insurance for the let property
- Ground rent and service charges
- Accountancy fees for preparing your rental accounts
- Council tax and utilities you pay while the property is empty between tenancies
- Advertising for new tenants
- Professional fees directly related to the letting (for example, inventory clerks)
Repairs and maintenance that restore the property to its previous condition are usually deductible. Replacing a broken boiler like-for-like is a repair; fitting a more expensive system as an upgrade may be treated differently.
Mortgage interest and Section 24
If you hold buy-to-let property in your own name, you no longer deduct mortgage interest in full against rental profit. Instead you receive a basic-rate tax reduction on qualifying finance costs. That restriction (often called Section 24) is why higher-rate landlords often look at limited company structures for new purchases.
Company landlords still deduct interest as a business expense against Corporation Tax, subject to the usual rules.
What you usually cannot claim
Capital improvements — extending the property, converting a loft, or installing a brand-new kitchen that materially upgrades the property — are not day-to-day expenses. They may affect the Capital Gains Tax calculation when you sell, but they do not reduce rental profit in the year you spend the money.
Personal costs, travel that is mainly personal, and the cost of your own time are also out.
Keep the evidence
HMRC expects records that show what you spent and why it relates to the letting. Bank statements alone are rarely enough; keep invoices, agent statements and a simple per-property schedule.
If you want a second pair of eyes on what you can claim this year, get in touch — we prepare rental accounts for individual, portfolio and limited company landlords.