Landlord Tax Return: The 10 Property Expenses HMRC Lets You Claim

UK landlord reviewing rental property paperwork, receipts and tax records at home

Written by Sam

If you receive rent from a property, you may need to report it on a self-assessment tax return. The good news is that HMRC allows many ordinary property costs to be deducted from your rental income.

This can reduce your taxable rental profit. But the rules are not always straightforward, particularly when you are deciding whether a cost is a repair, an improvement or a finance cost.

This guide explains 10 common property expenses landlords can claim, what HMRC usually does not allow and how to get help preparing your return.

For growing SMEs and limited companies, ongoing accounting support starts at £85pm+. If you need a landlord self-assessment tax return, Accountant Search can match you with an accountant for a £300 inc VAT return.

The basic rule for claiming landlord expenses

A property expense generally needs to meet three tests:

  • It must relate to your property rental business.
  • It must be incurred wholly and exclusively for that business.
  • It must be a revenue expense rather than the cost of buying or improving the property.

You should keep invoices, receipts, bank statements and other records to support each claim. If a cost relates partly to you personally and partly to the rental property, you can usually only claim the genuine rental business element.

Here are 10 common expenses to check before completing your landlord tax return.

1. Letting agent and property management fees

If you use a letting agent to find tenants or manage your property, their charges are normally allowable.

This can include:

  • Tenant-find fees
  • Monthly management commissions
  • Rent collection fees
  • Tenancy renewal charges
  • Inventory fees
  • Property inspection charges
  • Administration fees connected with the tenancy

If the agent takes their fee from the rent before paying the balance to you, remember to record the full rental income and claim the agent’s fee separately as an expense.

2. Repairs and maintenance

Repairs that restore or maintain the property are usually allowable expenses.

Examples include:

  • Fixing a leaking roof
  • Repairing a boiler
  • Replacing broken windows
  • Repairing plumbing or electrical faults
  • Repainting walls
  • Treating damp
  • Repairing damaged flooring
  • Fixing locks, doors or fencing

The important distinction is whether the work repairs an existing part of the property or creates something substantially better.

Replacing a worn-out item with a modern equivalent can still be a repair. For example, replacing an old basic kitchen with another kitchen of a broadly similar standard may be allowable.

Landlord and property manager discussing a repair estimate inside a UK rental property

3. Landlord insurance

Insurance premiums connected with the rental property are usually deductible.

This may include:

  • Buildings insurance
  • Landlord contents insurance
  • Public liability cover
  • Rent guarantee insurance
  • Legal expenses cover
  • Emergency repair cover

Keep the policy documents and receipts, particularly if the policy covers more than one property. You may need to divide the cost between properties when preparing your return.

4. Legal and professional fees

Some legal and professional fees connected with letting the property can be claimed.

Allowable examples may include:

  • Preparing or renewing a standard tenancy agreement
  • Recovering rent arrears
  • Serving relevant notices
  • Eviction-related legal work
  • Advice about an existing tenancy
  • Fees paid to an accountant for preparing property accounts or tax returns

However, legal costs connected with buying or selling a property are normally capital costs. They are not usually deducted from rental income in the same way as day-to-day letting expenses.

5. Advertising and tenant-finding costs

The cost of advertising your property to find tenants is normally an allowable expense.

This can include:

  • Online property listings
  • Printed advertising
  • Professional property photography
  • Letting boards
  • Tenant referencing
  • Credit checks
  • Right-to-rent administration
  • Marketing fees paid to a letting agent

These costs must relate to letting the property. Advertising a property for your own private use would not qualify.

6. Council tax and utilities you pay

If you are responsible for council tax or household bills while the property is empty or between tenants, these costs may be allowable.

Depending on the tenancy arrangement, this could include:

  • Council tax
  • Gas
  • Electricity
  • Water charges
  • Broadband
  • Communal heating

If tenants pay these bills themselves, you cannot claim costs you have not incurred. If you pay bills as part of the rent, keep a clear record showing what was included.

7. Ground rent, service charges and management charges

For leasehold properties, ground rent and service charges connected with renting out the property may be deductible.

This may include:

  • Ground rent
  • Block management charges
  • Communal cleaning
  • Lift maintenance
  • Shared lighting
  • Building maintenance charges
  • Reserve fund contributions, depending on their purpose and treatment

Read service charge statements carefully. A charge for routine maintenance may be treated differently from a charge for a major improvement project.

8. Cleaning, gardening and other property services

Costs for services that keep the rental property usable and presentable can often be claimed.

Examples include:

  • End-of-tenancy cleaning
  • Regular cleaning of communal areas
  • Gardening
  • Window cleaning
  • Waste removal
  • Snow and ice clearance
  • Pest control
  • Routine safety checks

The service should be connected with the rental business rather than your personal home. Keep the invoice and note which property the work relates to.

9. Replacing domestic items

Landlords may be able to claim relief when they replace certain domestic items supplied for tenants.

Examples might include:

  • Beds
  • Sofas
  • Tables
  • Chairs
  • Curtains
  • Carpets
  • Fridges
  • Washing machines
  • Cookers

This is generally a replacement relief rather than a deduction for buying the first item for a property. The replacement must be for the tenant’s use, and the new item should be broadly equivalent to the old one.

If you upgrade the item, the allowable amount may be limited to the cost of a reasonable modern equivalent. You cannot normally claim for additional features simply because you chose a more expensive model.

10. Buy-to-let mortgage interest and other finance costs

Mortgage interest is one of the areas that causes the most confusion.

For individual landlords with residential property, mortgage interest is not normally deducted in full from rental income. Instead, qualifying finance costs usually provide a basic-rate tax reduction, currently calculated at 20%.

Qualifying finance costs may include:

  • Interest on a buy-to-let mortgage
  • Interest on a loan used for the rental business
  • Certain mortgage arrangement fees
  • Some broker fees
  • Interest on an overdraft used for the property business
  • Certain early repayment charges

The capital repayment part of your mortgage is not an allowable expense. Only the qualifying finance cost is relevant.

You should record finance costs separately from your normal property expenses. An accountant can help make sure they are reported in the correct section of your self-assessment return.

Companies that own property are subject to different corporation tax rules. If your property is held through a limited company, speak to a limited company accountant before assuming the individual landlord rules apply.

Repairs or improvements? Get the difference right

This is one of the most important parts of preparing a landlord tax return.

Repairs are usually revenue expenses

A repair puts something back into its original working condition. Examples include:

  • Replacing broken roof tiles
  • Repairing a damaged boiler
  • Repainting a property
  • Fixing a leaking pipe
  • Replacing worn flooring with a similar standard

Improvements are normally capital costs

An improvement adds something new or significantly upgrades the property. Examples include:

  • Building an extension
  • Adding a new bathroom
  • Converting a loft
  • Turning a two-bedroom property into a three-bedroom property
  • Installing a substantially higher specification kitchen
  • Adding features that were not there before

Capital costs are not normally deducted from rental income as day-to-day expenses. They may be relevant when calculating a future capital gain, so keep the invoices and records.

Sometimes one project includes both repairs and improvements. For example, replacing a damaged kitchen may include an allowable repair element and a non-allowable upgrade element. In that case, the cost may need to be split on a reasonable basis.

Expenses landlords usually cannot claim

As well as improvements and mortgage capital repayments, you should be careful with:

  • Private household expenses
  • Costs unrelated to the rental property
  • The value of your own time
  • Mortgage payments that represent capital repayment
  • Legal fees for buying or selling the property
  • Initial furniture purchases
  • Fines and penalties
  • Costs already reimbursed by somebody else
  • Personal travel that is not genuinely for the property business

Do not claim an expense simply because it appears on a bank statement. You need to be able to explain its business purpose.

Landlord organising rental property receipts, invoices and financial records

How to prepare for your self-assessment tax return

Before sending your return, gather:

  1. Total rent received for the tax year.
  2. Letting agent statements.
  3. Repair and maintenance invoices.
  4. Insurance documents.
  5. Mortgage interest and finance cost statements.
  6. Council tax and utility records.
  7. Ground rent and service charge statements.
  8. Advertising and tenant-finding costs.
  9. Replacement domestic item receipts.
  10. Accountant and professional fee invoices.

If you own more than one property, keep separate records for each one. This makes it easier to identify errors and explain unusual costs.

The tax year runs from 6 April to the following 5 April. For the 2025/26 tax year, the online filing deadline is 31 January 2027. Leaving everything until the last minute can make it harder to find missing invoices or separate repairs from improvements.

Need help with your landlord tax return?

Working out which expenses qualify can be time-consuming, especially if you have several properties, mixed-use borrowing or a major refurbishment project.

Accountant Search helps individuals and SMEs find an accountant suited to their needs. You can find an accountant or learn more about support with a self-assessment tax return.

For a landlord self-assessment return priced at £300 inc VAT, complete the SA form and tick the Self-Assessment option. We will use your details to match you with an accountant who can check your figures, review your expenses and prepare your return.

Final checklist

Before claiming a property expense, ask:

  • Was the cost genuinely for my rental business?
  • Do I have an invoice, receipt or statement?
  • Is it a repair rather than an improvement?
  • Have I separated private and business use?
  • Is it a finance cost that needs reporting separately?
  • Have I claimed the cost somewhere else already?

If you are unsure, do not guess. A qualified accountant can help you claim the expenses you are entitled to without making an avoidable error on your self-assessment tax return.