Key takeaways
- You can deduct costs incurred wholly and exclusively for letting the property.
- Repairs are allowable. Improvements aren't, though they may reduce Capital Gains Tax when you sell.
- For individual landlords, mortgage interest gives a 20% tax credit rather than a straight deduction.
- Keep receipts and invoices. HMRC can ask to see them for years after you file.
Common allowable expenses
Letting and management
Agent fees, advertising, referencing costs you pay.
Repairs and maintenance
Fixing a boiler, repainting, replacing broken tiles.
Insurance
Landlord buildings, contents and rent guarantee cover.
Bills you pay
Council tax, utilities and broadband when they're your cost, not the tenant's.
Professional fees
Accountants, safety certificates, inventory clerks, legal fees for lets under a year.
Ground rent and service charges
For leasehold flats.
Repair or improvement?
| Repair (allowable) | Improvement (not allowable) | |
|---|---|---|
| Kitchen | Replacing worn units like for like | Adding an extension |
| Windows | Single to double glazing (now standard) | Adding a conservatory |
| Heating | Replacing a broken boiler | Installing heating where there was none |
| Rooms | Redecorating between tenants | Converting a loft into a bedroom |
Records to keep
- 1
Receipts and invoices
For every cost, showing date, supplier and what it was for.
- 2
Rent received
Bank statements or a rent ledger for each property.
- 3
Mileage log
If you claim travel, record date, journey and purpose.
- 4
Mortgage statements
To split interest from capital repayments.
Keep every receipt in the right place. Log expenses against each property in Simple Landlord and see your income, costs and cash flow without a spreadsheet.
Get early accessFAQs
Can I claim mortgage capital repayments?+
No, only the interest, and for individuals that's as a 20% tax credit.
Can I claim for my time?+
No. You can't pay yourself for your own work on the property.
What is the property allowance?+
A £1,000 tax-free allowance. You can use it instead of claiming actual expenses if your costs are lower.
Can I claim costs before the first let?+
Usually yes, for costs within seven years before letting that would have been allowable once let.
Can I claim a new kitchen?+
If it replaces an old one like for like, it's generally a repair. If it's a significant upgrade, part may be capital.
Written and reviewed by the Simple Landlord Editorial Team
Last reviewed 22 October 2026. This guide is general information, not legal or tax advice.
Sources
Keep every receipt in the right place
Log expenses against each property in Simple Landlord and see your income, costs and cash flow without a spreadsheet.
