What landlord expenses are tax deductible?
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In short: Allowable expenses include letting agent fees, insurance, repairs (not improvements), ground rent, service charges, utility bills you pay, and travel to the property. Mortgage interest is not deductible — only a 20% tax credit applies.
Content updated:
Repairs restore the property to its previous condition; improvements (extensions, new kitchens beyond like-for-like) are capital and not deductible against rent.
Replace domestic items relief covers like-for-like furniture and appliances in furnished lets.
Keep receipts and a separate rental bank account for HMRC enquiries and Making Tax Digital.
Primary source: gov.uk/renting-out-a-property/paying-tax
Part of our Benefits & tax
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