Tax Tips for Landlords: Expenses You Can (and Can’t) Claim

If you earn rental income in the UK, you must report it on a Self Assessment tax return. The good news? Claiming the right expenses can significantly reduce your taxable income. The bad news? Many landlords lose out — either by claiming too little or accidentally claiming costs that HMRC doesn’t allow.

Here’s a clear guide to what you can and can’t claim.

Landlord Income – What Counts?

You must declare more than just the rent itself. Income includes:

• Rent received from tenants (residential or commercial)

• Payments for additional services (e.g. cleaning, gardening, or utilities included in rent)
  

Allowable Expenses – What You Can Claim

These reduce your rental profits (and therefore your tax bill):

• Repairs & maintenance (fixing a roof leak, replacing broken appliances — but not upgrading)

• Insurance (buildings, contents, and landlord insurance policies)

• Letting agent or property management fees

• Mortgage interest (subject to current HMRC restrictions and the 20% tax credit)

• Council tax, water, and utilities you pay on behalf of tenants

Non-Allowable Expenses – What You Can’t Claim

HMRC does not permit deductions for:

• Property improvements or renovations (e.g. extensions, loft conversions, new kitchens — these are capital expenses)

• Personal costs unrelated to the rental property

Tip: Improvements may be claimed against Capital Gains Tax when you sell the property — but not against rental income.

Record-Keeping Matters

To avoid HMRC penalties and support your claims:

• Keep receipts, invoices, and statements for all expenses

• Maintain a clear separation of personal and property finances (ideally with a dedicated bank account)

• Store records for at least 5 years after the filing deadline

Conclusion

Getting landlord expenses right can save you thousands over time. The key is knowing the difference between allowable costs and non-allowable improvements, while keeping thorough records. If in doubt, professional advice can ensure you claim everything you’re entitled to — without falling foul of HMRC rules.