Last updated: 14 October 2026
What expenses can a landlord claim?
UK landlords can deduct allowable running costs from their rental income. These include letting agent fees, repairs and maintenance, insurance, service charges and ground rent, council tax and bills paid during void periods, accountancy fees, and the cost of replacing furniture and appliances. Mortgage interest is not deducted directly. Individual landlords get a 20% tax credit on finance costs instead.
Allowable expenses checklist
- Letting and management agent fees
- Repairs and maintenance, such as fixing a boiler, repainting or replacing broken windows
- Buildings and contents insurance, and rent guarantee insurance
- Ground rent and service charges on leasehold flats
- Council tax, gas, electricity and water, if you pay them
- Gas safety certificates, EPCs and electrical inspections (EICRs)
- Cleaning and gardening
- Accountancy fees and legal fees for lets of less than a year
- Advertising for tenants
- Replacing domestic items “like for like”, such as beds, sofas, white goods and carpets
- Travel to the property for letting purposes
Expenses you can’t claim against rent
- Capital improvements, such as an extension, a loft conversion or upgrading to a much better kitchen. These may reduce CGT when you sell
- The cost of buying the property
- Repaying the capital on your mortgage
- Your own time
- Furniture for a new let, the first time you furnish it
Mortgage interest and Section 24
Individual landlords cannot deduct mortgage interest or other finance costs from rents. Instead, they get a tax credit of 20% of the finance costs. Higher-rate landlords are worse off as a result. Limited companies are not affected. See buy-to-let limited company accountants.
Example
Rent £18,000, allowable expenses £4,000 and mortgage interest £8,000. The taxable profit is £14,000. A higher-rate taxpayer pays £5,600 at 40%, less the £1,600 credit (20% of £8,000), so the tax is £4,000.
The property allowance alternative
If your gross rents are £1,000 or less, you don’t need to declare them. If they are higher, you can deduct £1,000 instead of your actual expenses, which is useful if your costs are low.
Records and Making Tax Digital
Keep receipts for at least 5 years after the 31 January deadline. From April 2026, landlords and sole traders with qualifying income over £50,000 must use MTD software and send quarterly updates. The threshold falls to £30,000 from April 2027.
Joint owners and finance costs
Joint owners each claim their own share of expenses and finance costs. For married couples, income is split 50:50 unless you have made a Form 17 declaration. Make sure each person’s mortgage interest credit follows their share of the borrowing. If one partner pays all the bills, it doesn’t change the split for tax. We check these figures as part of every landlord return.
Frequently asked questions
Can I claim for a new boiler?
Yes, if it replaces an old one. It is a repair.
Are expenses before the first let allowable?
Costs within 7 years before letting can be claimed, if they would have been allowable during the let.
Can I claim for a property that’s empty?
Yes, between lets, if you are actively trying to let it.
Do joint owners split expenses?
Yes, in line with how the income is shared.
Related: landlord tax returns and Form 17.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with your rental expenses and tax return. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
