Landlord expenses · Tax guide · Updated May 2026
Allowable expenses for UK landlords: what you can claim.
Written by Iftikhar Rashid FCCA — 16 years in practice, specialist in landlord tax.
Short answer
UK landlords can deduct allowable expenses from gross rental income to arrive at taxable profit. Allowable expenses include letting agent fees, repairs (not improvements), insurance, professional fees, and direct property management costs. Mortgage interest is not deductible — since Section 24, a 20% tax credit applies instead. Capital expenditure (improvements) is not deductible but reduces CGT on disposal. [VERIFY at gov.uk]
Allowable vs non-allowable expenses
Allowable (deductible from rental income)
✓Letting agent fees
Finding tenants, rent collection, property management, inventory, check-in/out
✓Property repairs and maintenance
Like-for-like repairs only — not improvements or upgrades beyond original condition
✓Buildings and contents insurance
Landlord-specific insurance for the property and its contents (if furnished)
✓Ground rent and service charges
For leasehold properties — ground rent and service charge payments to the freeholder
✓Council tax (during voids)
If you pay council tax on an empty property between tenancies
✓Utility bills (if paid by landlord)
Gas, electricity, water if included in the tenancy arrangement
✓Accountancy and professional fees
Accountant fees for preparing rental accounts and self-assessment; legal fees for tenancy disputes
✓Advertising for tenants
Advertising costs to find new tenants — online listings, local press
✓Property travel (direct business travel)
Travel directly to manage or repair the property — with mileage log and clear business purpose
✓Replacement furniture/white goods
Replacement (not first purchase) of equivalent furnishings under replacement domestic items relief [VERIFY]
NOT allowable as revenue expense
✕Capital improvements
Extensions, loft conversions, double-glazing upgrades — these are capital expenditure, not revenue expenses
✕Initial furnishing costs
First-time purchase of furniture for a property — this is capital, not covered by replacement domestic items relief
✕Personal travel costs
General travel not directly connected to managing or repairing the specific property
✕Mortgage capital repayments
Repaying the loan principal — only finance costs (interest) receive a tax credit, not capital repayment
✕Your own time
You cannot deduct the value of your own time managing the property — only actual paid costs
Frequently asked questions
Can I claim mortgage interest as a landlord expense?
Not as a deductible expense — not since Section 24 was fully phased in from April 2020. Instead, you receive a 20% basic-rate tax credit on your finance costs (mortgage interest and other loan interest for the property). This is different from the old system where interest was deducted directly from rental income. Section 24 only applies to properties held in personal name — limited companies can still deduct mortgage interest in full.
What is the difference between a repair and an improvement for tax purposes?
A repair restores an asset to its original condition — deductible as an allowable expense. An improvement enhances an asset beyond its original condition — this is capital expenditure, not deductible against rental income but added to the CGT base cost. Example: replacing like-for-like rotting windows = repair (deductible). Replacing single-glazing with double-glazing = improvement (capital). HMRC looks at the nature of the work, not just the invoice description.
Can I claim letting agent fees?
Yes. Letting agent fees — for finding tenants, collecting rent, managing the property — are fully deductible allowable expenses. This includes renewal fees, inventory fees, check-in and check-out costs, and ongoing management charges.
Can I claim travel expenses to visit my rental properties?
Yes — in limited circumstances. Travel directly to manage or repair a rental property is deductible. However, HMRC scrutinises this carefully for landlords whose properties are close to their home or workplace. You cannot claim a general 'property inspection' without a clear business reason. Keep a mileage log with date, destination, and business purpose for every claim.
Can I claim for furniture and white goods?
For furnished properties: you can claim the 'replacement domestic items relief' when you replace furniture, furnishings, or white goods with equivalent replacements. The relief covers like-for-like replacement — not initial purchase of furnishings. If you upgrade significantly (e.g. replace a standard washing machine with a high-spec one), only the equivalent cost is deductible. [VERIFY: current replacement domestic items relief rules at gov.uk]
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