Allowable Expenses for Landlords UK: The Complete 2026 List

Claiming every allowable expense is the single most effective way to reduce your tax bill as a UK landlord. Yet thousands of landlords overpay tax every year simply because they do not know what they can claim or fail to keep adequate records.

HMRC allows landlords to deduct expenses that are incurred wholly and exclusively for the purpose of renting out a property. This guide provides the complete list of allowable expenses for UK landlords in 2025/26, organised by category with practical guidance on what qualifies and what does not.

Using Latch to track and categorise every expense as it occurs means nothing is missed when it comes to completing your Self Assessment tax return.

The Golden Rule: Wholly and Exclusively

Before diving into the list, understand the fundamental rule: an expense is only allowable if it is incurred wholly and exclusively for the purpose of your rental business. If an expense has a dual purpose (partly personal, partly rental), only the rental proportion can be claimed.

For example, if you use your personal mobile phone for tenant calls, you can claim a reasonable proportion of the bill relating to rental management. You cannot claim the entire bill.

Important: You cannot claim for capital expenditure (property improvements that add value) as a revenue expense. Improvements must be treated differently from repairs. Replacing a broken boiler with a like-for-like model is a repair. Replacing a standard boiler with a more expensive combination boiler could be classed as an improvement.

Finance Costs

Finance costs relate to borrowing used to purchase or improve the rental property. Since Section 24, these are treated differently from other expenses.

Mortgage interest payments (20% basic rate tax credit only — not a direct deduction for individual landlords)
Mortgage arrangement fees (spread over the life of the mortgage)
Loan interest on loans used to fund property repairs or improvements
Overdraft interest on a property business bank account
Credit card interest on property-related purchases

Section 24 reminder: Individual landlords cannot deduct mortgage interest directly from rental income. Instead, you receive a 20% tax credit. Limited companies can still deduct mortgage interest in full. See our dedicated Section 24 guide for full details.

Try our free Income Tax Calculator to see exactly how allowable expenses reduce your taxable profit and overall tax bill as a UK landlord.

Letting Agent and Management Fees

Fees paid to letting agents and property management companies for the day-to-day running of your rental property are fully allowable.

Letting agent monthly management fees (typically 8-15% of rent)
Tenant-find fees charged by letting agents
Inventory check-in and check-out fees
Property management software subscriptions (such as Latch)
Rent collection service fees
Fees for serving legal notices (Section 13, etc.)

Insurance

Insurance premiums paid to protect the rental property and your rental income are allowable expenses.

Landlord buildings insurance
Landlord contents insurance (for furnished lets)
Rent guarantee insurance
Landlord liability insurance
Legal expenses insurance (landlord-specific policies)
Boiler and home emergency cover

Tip: If your insurance policy covers multiple properties including your own home, you can only claim the proportion relating to rental properties. Keep a copy of the policy schedule showing the split.

Repairs and Maintenance

Repairs that restore the property to its previous condition are fully allowable. The key distinction is between a repair (allowable) and an improvement (capital expenditure, not allowable as a revenue expense).

Plumbing repairs (fixing leaks, unblocking drains, replacing tap washers)
Electrical repairs (replacing faulty sockets, fixing wiring issues)
Boiler servicing and repairs
Roof repairs (replacing broken tiles, fixing leaks)
Repainting and redecorating (internal and external)
Replacing broken windows with like-for-like
Damp treatment and mould remediation
Gutter cleaning and repair
Fence and boundary wall repairs
Replacing damaged flooring with similar quality
Pest control treatment
Lock changes between tenancies

Repair vs improvement: Replacing a single-glazed window with double glazing is an improvement, not a repair. Replacing a broken double-glazed unit with a new double-glazed unit is a repair. If in doubt, the test is whether you are restoring the property to its previous condition or making it better than before.

Replacement of Domestic Items Relief

Since April 2016, the old wear and tear allowance for furnished properties was replaced with the Replacement of Domestic Items Relief. You can claim the cost of replacing furnishings, appliances, and household items provided to tenants.

Replacing a washing machine, tumble dryer, or dishwasher
Replacing a fridge or freezer
Replacing a cooker, oven, or hob
Replacing carpets and floor coverings
Replacing curtains and blinds
Replacing beds, mattresses, sofas, and other furniture
Replacing crockery, cutlery, and kitchen equipment in furnished lets

You can claim the cost of a like-for-like or nearest modern equivalent replacement, minus any proceeds from selling or scrapping the old item. If the replacement is a substantial upgrade, you can only claim the cost of the nearest modern equivalent.

Legal and Professional Fees

Legal and professional fees relating to the ongoing management of your rental property are allowable. However, fees relating to the purchase or sale of the property are capital costs.

Solicitor fees for drawing up or renewing tenancy agreements
Solicitor fees for eviction proceedings
Accountancy fees for preparing rental accounts and tax returns
Tax adviser fees relating to rental property
Fees for debt recovery from tenants
Costs of resolving disputes with tenants (mediation, tribunal)
Professional valuation fees for rent review purposes

Not allowable: Solicitor and legal fees for buying or selling a property are not revenue expenses. These are added to the cost of the property for Capital Gains Tax purposes instead.

Accountancy and Tax Fees

The cost of having your rental accounts prepared and your tax return completed by a professional is an allowable expense.

Annual accountancy fees for rental property accounts
Tax return preparation fees (SA100 and SA105)
Tax investigation insurance premiums
Bookkeeping service fees
Property management software subscriptions (such as Latch)

Ground Rent and Service Charges

If your rental property is a leasehold, the ground rent and service charges you pay to the freeholder or management company are allowable expenses.

Annual ground rent
Service charges (maintenance of communal areas, lifts, etc.)
Sinking fund contributions
Building insurance included in service charges
Management company fees

Council Tax and Utilities (Void Periods)

Council tax and utility bills are normally paid by the tenant during the tenancy. However, during void periods (when the property is empty between tenants), you as the landlord are responsible for these costs, and they become allowable expenses.

Council tax during void periods
Gas and electricity during void periods
Water rates during void periods
Standing charges on utility accounts during void periods
Council tax and utilities if included in the rent (e.g., HMO bills-included lets)

Latch tip: Latch tracks void periods automatically. When a tenancy ends and no new tenancy starts, Latch flags the property as void and reminds you to record council tax and utility payments during the empty period.

Travel Costs

You can claim the cost of travel to and from your rental properties for management, inspection, or maintenance purposes. However, the rules depend on whether you treat your property rental as a business.

Mileage to and from rental properties for inspections (45p per mile for first 10,000 miles, 25p thereafter)
Mileage to collect rent, deliver keys, or meet contractors
Public transport fares for property visits
Parking charges when visiting rental properties
Congestion charges when visiting rental properties
Mileage to visit letting agents, solicitors, or accountants regarding rental properties

Keep a mileage log recording the date, destination, purpose, and miles driven for each trip. Latch allows you to record travel expenses and attach notes describing the purpose of each journey.

Advertising and Marketing

Costs incurred to find new tenants are allowable expenses.

Online listing fees (Rightmove, Zoopla, OpenRent, etc.)
Newspaper or magazine advertising
Professional photography for listings
Video tours and virtual viewing costs
For-let boards and signage
Tenant referencing fees (where paid by the landlord)

Office, Stationery, and Communication

Administrative costs of managing your rental property can be claimed.

Stationery (paper, envelopes, printer ink)
Postage costs for tenant correspondence
Proportion of phone bill relating to property management calls
Proportion of broadband bill if used for property management
Proportion of home office costs (use of home as office for property management)
Computer and software costs (proportionate to property use)

Cleaning and Gardening

Regular cleaning and garden maintenance costs are allowable, particularly between tenancies.

Professional cleaning between tenancies
End-of-tenancy deep cleaning
Regular communal area cleaning (flats and HMOs)
Garden maintenance and lawn cutting
Tree surgery and hedge cutting
Gutter cleaning
Window cleaning (communal or void period)

Safety and Compliance Certificates

All legally required safety checks and certificates are allowable expenses.

Annual gas safety certificate (CP12)
Electrical Installation Condition Report (EICR) — required every 5 years
Energy Performance Certificate (EPC)
Portable Appliance Testing (PAT)
Legionella risk assessment
Fire safety risk assessment (HMOs)
Smoke and carbon monoxide alarm installation and testing
HMO licence fees
Selective licensing fees

What You Cannot Claim

The following are common expenses that landlords mistakenly try to claim but which are not allowable:

Property purchase costs: Stamp Duty, solicitor fees for purchase, survey fees — these are capital costs
Property improvements: Extensions, loft conversions, new kitchens (unless replacing like-for-like) — capital expenditure
Personal expenses: Any costs not wholly and exclusively for the rental business
Mortgage capital repayments: Only the interest portion is eligible for relief, not capital repayments
Your own labour: You cannot charge for your own time spent managing the property
Clothing: Even if you wear overalls to do repairs, clothing is not an allowable expense
Fines and penalties: Late filing penalties, parking fines, etc. are never allowable

HMRC scrutiny: HMRC regularly checks property income pages on Self Assessment returns. Claiming expenses you are not entitled to can trigger an enquiry, result in penalties, and require repayment of underpaid tax with interest.

How Latch Helps You Claim Every Expense

Tracking every expense manually is time-consuming and error-prone. Latch automates the process:

Bank Feed Integration

Connect your bank account and Latch automatically imports transactions, so no expense is missed.

Automatic imports

Smart Categorisation

Latch categorises expenses into HMRC-recognised categories. Insurance, repairs, agent fees — all correctly classified.

HMRC-ready categories

Receipt Capture

Photograph receipts on your phone and Latch stores them digitally, linked to the expense record.

Never lose a receipt

Property Allocation

Allocate expenses to specific properties for accurate per-property profit and loss reporting.

Per-property tracking

Tax Reports

Generate tax-ready reports showing income, expenses by category, and net profit — ready to transfer to your SA105.

One-click reports

Never Miss an Allowable Expense Again

Start your free 30-day trial of Latch. Automatic bank feeds, smart categorisation, and receipt capture ensure every allowable expense is recorded and ready for your tax return. No credit card required.

Rent received

£14,200

Paid on time

Upcoming rent

£3,275

7 scheduled

Rent overdue

£0

All clear

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Disclaimer: This guide is for informational purposes only and does not constitute tax advice. The allowability of specific expenses depends on individual circumstances. HMRC rules may change. Always consult a qualified tax adviser or accountant for advice specific to your situation. Last updated February 2026.