Understanding the Expenses Landlords can Claim

As a landlord in the UK, understanding your tax obligations and the expenses you can claim is crucial. This knowledge helps you to maximise your rental income by reducing your taxable profit. This article provides comprehensive information on what expenses landlords can claim, all verified from official HMRC sources.

Pre-Letting Expenses

Before tenants move in, landlords often incur costs. The HMRC allows you to claim some of these expenses. According to the HMRC Let Property Campaign guide:

  • Advertising costs to find tenants
  • Agent fees for tenant search
  • Legal costs for drawing up tenancy agreements

Property Maintenance and Repair Costs

During the rental period, landlords can claim various property maintenance and repair costs. These include:

  • General property repairs and maintenance
  • Replacement of domestic items
  • Insurance premiums for buildings and contents coverage

However, improvements that increase the property’s value, known as ‘capital expenditure’, are not claimable. Refer to the HMRC Property Income Manual PIM2020 for more details.

Financial Costs

Landlords can also claim a portion of their financial costs. As of 2025, landlords can claim relief on up to 20% of their finance costs, including:

  • Mortgage interest
  • Loan interest for buying furnishings

Remember that this doesn’t cover repayment of the capital. Full details are available in the HMRC guide on changes to tax relief for residential landlords.

Running Costs

When letting a property, several running costs are claimable, such as:

  • Utility bills (if paid by the landlord)
  • Council tax (if paid by the landlord)
  • Costs of services, including cleaners and gardeners

Professional Fees

Finally, professional fees associated with running your rental business are allowable expenses. These include:

  • Letting agent fees
  • Legal fees for evictions
  • Accountant fees

Conclusion

Understanding the expenses landlords can claim in the UK can help maximise profits from your rental business. Always keep accurate records and receipts of your expenses, and when in doubt, seek professional advice to ensure you are correctly claiming all allowable expenses.

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