Top 10 Allowable Expenses Landlords Can Claim on Their Tax Return

If you earn rental income in the UK, you’ll need to file a Self Assessment tax return. The key to reducing your tax bill is knowing which expenses you can claim — and which ones you can’t. Many landlords miss out on valuable deductions simply because they’re not aware of them.

Here are the top 10 allowable expenses every landlord should know:

1. Repairs and Maintenance

Fixing a leaking roof, replacing broken windows, or repairing a boiler? ✔️ Allowable.Installing a brand-new kitchen or adding an extension? ❌ That’s an improvement, not maintenance.

2. Insurance Premiums

Landlord, building, and contents insurance are all deductible. These protect your property and tenants — and help reduce your tax bill.

3. Letting Agent or Property Management Fees

Whether you use an agent for finding tenants, handling rent, or managing the property, their fees are fully allowable.

4. Mortgage Interest

Landlords can no longer deduct the full amount of mortgage interest. Instead, you get a 20% tax credit to offset the cost. Still valuable, but worth planning for.

5. Council Tax, Water, and Utilities

If you cover council tax, electricity, gas, or water bills for your rental property, you can claim them back.

6. Service Costs and Ground Rent

Leasehold landlords can deduct service charges, ground rent, and similar costs tied to the property.

7. Replacement of Domestic Items

You can claim for replacing furnishings like sofas, beds, white goods, or carpets — but only if they’re a like-for-like replacement, not an upgrade.

8. Travel Costs

Need to visit your rental property for inspections or repairs? Travel costs (mileage, public transport, parking) are claimable. Commuting from home to your office doesn’t count.

9. Legal and Professional Fees

Solicitor fees for drawing up tenancy agreements, or accountant fees for preparing your Self Assessment, are allowable. Legal fees related to buying the property are not.

10. Office and Admin Costs

From phone bills to stationery to property management software, admin costs linked directly to your rental business are deductible.

🚫 Expenses You Can’t Claim

• Property improvements (e.g. renovations, extensions)

• Personal costs unrelated to the rental business

• Capital costs (e.g. buying the property itself)

Note: Some of these may reduce Capital Gains Tax when you sell the property, but they won’t reduce your rental income tax.

✅ Final Thoughts

Knowing what you can and can’t claim is one of the easiest ways to maximise your rental income. Keep good records, save all receipts, and if you’re ever unsure, get professional advice to avoid missing out — or making costly mistakes.