27. April 2026
What Expenses Can Landlords Claim Against Rental Income?
One of the most common questions landlords ask is: what expenses can I actually claim against my rental income?
It is a sensible question, because the right treatment of expenses can reduce taxable profit, but the wrong treatment can lead to errors or unnecessary HMRC problems. HMRC’s guidance says that expenses can normally be deducted if they are incurred wholly and exclusively for the rental business, and it specifically distinguishes between allowable repairs and capital improvements.
Common landlord expenses that are often allowable
Depending on the circumstances, landlords can often claim expenses such as letting agent fees, management fees, landlord insurance, repairs and maintenance, accountancy fees relating to the rental business, and replacement domestic items where the rules apply. HMRC’s rental income guidance confirms that expenses such as maintenance and repairs may be allowable when they are for the rental business.
The key point is that the expense must relate properly to the rental business, and the records need to support it.
Repairs are not the same as improvements
This distinction causes a lot of confusion.
A repair generally restores something to its previous condition. HMRC’s property guidance and toolkit explain that repairs can normally be deducted from rental income, but capital expenditure is treated differently and, where relevant, may instead be relevant for Capital Gains Tax purposes later on.
So replacing worn or broken items on a like-for-like basis may be a repair, but upgrading, extending or improving beyond the previous standard may be capital in nature instead.
What about mortgage interest?
This is another area that often catches landlords out. For residential landlords, mortgage interest and other finance costs are not relieved in the same way as ordinary running expenses. HMRC states that relief for residential landlord finance costs is restricted to the basic rate of Income Tax, and that restriction has been fully in place since 6 April 2020.
So if you are expecting full deduction of residential mortgage interest against rental profit, that assumption should be checked carefully.
Do all landlords need to file a tax return?
Not all, but many do. GOV.UK says rental income generally needs to be reported on Self Assessment if it is more than £2,500 after allowable expenses or more than £10,000 before allowable expenses. GOV.UK also confirms there is a £1,000 property allowance, but if you use that allowance you cannot also deduct allowable expenses from the same income.
Good record-keeping matters
The best tax result usually comes from good records rather than last-minute estimates. That means keeping invoices, statements and receipts for repairs, insurance, agent fees, mortgage interest and other property-related costs, and keeping those records property-by-property where possible if you have more than one rental.
Final thoughts
Landlord expenses can sound simple in principle, but the detail matters. Good records and the correct treatment of expenses can make a real difference to the final tax position.
Need help with your landlord tax return or rental accounts?
PR Accountants Ltd supports landlords and property investors across the UK with practical tax and accounting support.