Allowable Expenses
Tax-deductible costs
Fully Deductible Expenses
Property maintenance and repairs:
- Fixing broken windows, doors, or appliances
- Repairing or replacing heating systems (like-for-like)
- Redecorating between tenancies
- Garden maintenance and cleaning costs
Professional fees:
- Letting agent management fees
- Legal fees for tenancy agreements (leases under 1 year)
- Accountancy fees
Insurance:
- Landlord building insurance
- Contents insurance
- Rent guarantee insurance
Other costs:
- Advertising for tenants
- Safety certificates (gas safety, EICR, EPC)
- Landlord licensing fees
- Ground rent and service charges
Not Deductible
Capital improvements:
- Extensions or conversions
- Adding central heating where none existed
- Upgrading kitchens or bathrooms beyond basic repair
Personal costs: Clothing, food while visiting properties, fines or penalties
Repairs vs Improvements
The distinction is important:
- Repair: Replacing like-for-like (e.g., replacing a broken boiler with a similar model) ✓ Deductible
- Improvement: Enhancing the property (e.g., replacing a basic boiler with a smart heating system) ✗ Not deductible
If you replace something with a modern equivalent performing the same function, this is generally treated as a repair.
Need Help With Expenses?
Proper expense tracking reduces your tax bill. We provide clear income and expenditure statements, though recommend working with a tax specialist for planning. Get in touch to learn more.