🏠 What Can Landlords Claim on Their Tax Return?

A Complete Guide to Allowable Expenses & Capital Allowances

By Rebate My Tax Ltd – The UK’s Number 1 Tax App & Tax Service

Owning a rental property can be rewarding — but when tax season rolls around, many landlords wonder what they can actually claim. The truth is, there are dozens of allowable expenses and reliefs that can help reduce your tax bill legally.

At Rebate My Tax, we make it simple. Here’s everything UK landlords need to know about claiming property expenses, capital allowances, and staying HMRC compliant.

💡 1. What Counts as an Allowable Expense?

Allowable expenses are the day-to-day running costs of letting your property.
HMRC only allows deductions for costs that are “wholly and exclusively” for the rental business — not for personal or capital use.

✅ Common Allowable Expenses:

Category	Examples	Notes
Repairs & Maintenance	Fixing leaks, repainting, replacing broken items	Must be like-for-like (no upgrades).
Letting & Management Fees	Agent fees, referencing, advertising	Fully allowable.
Insurance	Buildings, contents, or landlord insurance	100% allowable.
Utilities & Council Tax	If paid by the landlord	Only allowable if not reimbursed by tenants.
Cleaning & Gardening	End-of-tenancy cleaning, gardening, pest control	Fully allowable.
Travel Costs	Visiting your property or agents	Keep mileage or travel receipts.
Accountancy & Legal Fees	For preparing rental accounts or tenancy contracts	Buying/selling legal fees are not allowable.
Phone, Postage & Stationery	Admin and communications related to your property	Business proportion only.
Ground Rent & Service Charges	For flats or communal areas	Fully allowable.
Replacement of Domestic Items	Replacing furniture, appliances, curtains	Like-for-like only, not initial purchase.

🚫 2. What Landlords Can’t Claim

Some expenses might feel business-related but aren’t deductible for tax.

Not Allowable	Why
Buying the property	Treated as capital expenditure.
Mortgage capital repayments	Loan principal is not an expense.
Home improvements	Adds property value — claimed under capital gains later.
Personal or mixed-use costs	Only business use qualifies.

🏗️ 3. Capital Expenditure vs Capital Allowances

Capital expenditure refers to long-term improvements or the purchase itself. These aren’t deducted from rental income but instead added to your property’s cost for when you sell (to reduce Capital Gains Tax).

Examples of Capital Expenditure:

• New extensions or loft conversions
• Major upgrades (new central heating, new kitchen installation)
• Property purchase costs (stamp duty, solicitor fees, surveys)

Capital Allowances (Special Cases):

Residential landlords can’t normally claim capital allowances, except for:

• Furnished Holiday Lets (FHLs)
• Commercial properties

If your property qualifies, you can claim:

• Furniture, fixtures, fittings
• Integral features (lighting, heating, air-conditioning, etc.)

💷 4. Mortgage Interest & Finance Costs

Since 2020, residential landlords can no longer deduct mortgage interest as an expense.

Instead, you receive a 20% basic rate tax credit on the interest portion.

However, Furnished Holiday Lets and commercial properties can still claim full deductions.

📚 5. Keep Proper Records

HMRC requires landlords to keep clear records for at least 5 years after the 31 January deadline.
You’ll need:

• Receipts and invoices
• Mortgage interest statements
• Agent statements
• Tenancy agreements
• Mileage logs or travel records

Organised records make your Self Assessment easier and help avoid HMRC penalties.

🧾 6. Download Your Free Landlord Expense Tracker

We’ve created a free downloadable toolkit to help you stay organised all year round:

📘 Landlord Expense & Capital Allowance Guide (PDF)

📊 Landlord Expense Tracker (Excel) — enter your property expenses and let it calculate totals automatically!

👉 Download both for free at: www.rebatemytax.com

✅ Final Thoughts

Being a landlord comes with plenty of responsibilities — but with the right records and tax claims, you can keep more of your hard-earned rental income.

At Rebate My Tax, we’re here to help you claim what’s yours — whether it’s rental expenses, employment rebates, or self-employed tax help.

💚 Rebate My Tax Limited – The UK’s Number 1 Tax App & Tax Service
📩 info@rebatemytax.co.uk | 🌐 www.rebatemytax.com