Allowable landlord expenses

You can include many expenses in your tax return - alongside your rental income - to reduce the amount of profit you pay tax on.

The general rule is that the expenses must be wholly and exclusively for your property rental business and must not be of a capital nature.

You may still be able to claim tax relief for the interest you pay on a mortgage for your rental property. This has been restricted in recent years for residential properties and special rules exist, but this is calculated in the software for you.

You may also be able to claim:

• General maintenance and repair costs.
• Bills paid by you as the landlord, e.g. water, gas, electricity, council tax etc.
• Insurance, e.g. contents, buildings, rent guarantee.
• Letting agent and property management fees.
• Professional fees, e.g. accountancy, legal etc
• Cost of services, e.g. cleaners, gardeners
• Replacements of furniture, furnishings and white goods (but not the initial purchase cost)
• Direct costs related to your property rental business including phone calls, stationery, advertising for new tenants, or travel.
• Landlord property licence
• Ground rents and service charges.

Usually, costs associated with the property purchase cannot be set against rental income e.g. purchase price, stamp duty, and legal fees, as these are all capital expenditure.

UK PROPERTY EXPENSES 2022-23

Our record-keeping tools help you stay on top of your property expenses, so you always know your profit position. These record-keeping categories are automatically added to the tax return to take the hassle out of preparing it.