Landlord Tax: Allowable Expenses As a landlord, you can reduce your tax bill by deducting a number of expenses that you might incur as a result of letting out a property. These are known as allowable expenses. Why should you claim property expenses? The simple answer is this - every penny spent on your property reduces its profit, which reduces your rental income, ultimately reducing your tax liability! You pay tax on the total rental income earned, after deducting any allowa