Landlord Allowable Expenses: Complete HMRC List for 2025/26
Every expense UK landlords can claim against rental income. HMRC-approved categories, what you can't claim, and how Section 24 affects mortgage interest.
Key Takeaways
- Allowable expenses reduce your taxable rental profit
- Expenses must be “wholly and exclusively” for the rental business
- Mortgage interest is restricted to a 20% tax credit (Section 24)
- Keep receipts for at least 6 years for HMRC compliance
Understanding what you can and can’t claim as a landlord is the difference between overpaying tax and keeping more of your rental income. This guide covers every allowable expense category HMRC accepts for the 2025/26 tax year.
What Are Allowable Expenses?
Allowable expenses are costs you incur “wholly and exclusively” for your rental business. You deduct these from your rental income to calculate your taxable profit.
Example: You receive £20,000 rent and have £6,000 in allowable expenses. You pay tax on £14,000, not £20,000.
The key test is whether the expense would exist if you weren’t renting out the property. Personal costs, or costs split between personal and rental use, either can’t be claimed or must be apportioned.
Complete List of Allowable Expenses
Premises Running Costs (SA105 Box 24)
Day-to-day costs of maintaining your rental property:
| Expense | Claimable? | Notes |
|---|---|---|
| Repairs and maintenance | ✅ Yes | Must restore, not improve |
| Painting and decorating | ✅ Yes | Between tenancies or general upkeep |
| Building insurance | ✅ Yes | Landlord policies |
| Contents insurance | ✅ Yes | If you provide furnishings |
| Landlord liability insurance | ✅ Yes | |
| Ground rent | ✅ Yes | Leasehold properties |
| Service charges | ✅ Yes | Leasehold maintenance fees |
| Utility bills | ✅ Yes | If you pay them (e.g., HMOs) |
| Council tax | ✅ Yes | Only during void periods or if included in rent |
| Garden maintenance | ✅ Yes | If your responsibility |
| Cleaning | ✅ Yes | Between tenancies |
Repairs vs Improvements
This catches out a lot of landlords:
| Scenario | Type | Claimable? |
|---|---|---|
| Replacing a broken boiler with equivalent | Repair | ✅ Yes |
| Replacing a boiler with a better model | Repair | ✅ Yes (like-for-like principle) |
| Installing a boiler where there wasn’t one | Improvement | ❌ No |
| Fixing a leaky roof | Repair | ✅ Yes |
| Adding a loft conversion | Improvement | ❌ No |
| Replacing single glazing with double | Improvement | ❌ No |
| Replacing old double glazing with new | Repair | ✅ Yes |
The rule: If you’re restoring something to its previous condition, it’s a repair. If you’re adding something new or significantly upgrading, it’s an improvement (capital expenditure).
Professional Fees (SA105 Box 26)
| Expense | Claimable? | Notes |
|---|---|---|
| Letting agent fees | ✅ Yes | Management and tenant-find fees |
| Accountant fees | ✅ Yes | For rental accounts and tax returns |
| Legal fees (tenancy agreements) | ✅ Yes | Drafting, renewing leases |
| Legal fees (evictions) | ✅ Yes | Regaining possession |
| Legal fees (buying property) | ❌ No | Capital cost |
| Inventory clerk | ✅ Yes | Check-in/check-out reports |
| Safety certificates | ✅ Yes | Gas Safe, EICR, EPC |
| Tenant referencing | ✅ Yes | Credit checks, Right to Rent |
Finance Costs (SA105 Box 25) - Section 24 Restricted
Since April 2020, mortgage interest is no longer fully deductible. Instead:
- You report the full interest amount
- HMRC gives you a 20% tax credit
Example:
- Rental profit before interest: £15,000
- Mortgage interest paid: £5,000
- Tax calculated on: £15,000 (not £10,000)
- Tax credit received: £5,000 × 20% = £1,000
This particularly hurts higher-rate taxpayers. If you’re in the 40% bracket, you effectively only get half the relief you used to.
| Finance Cost | Treatment |
|---|---|
| Mortgage interest | 20% tax credit only |
| Loan interest (for deposits, repairs) | 20% tax credit only |
| Mortgage arrangement fees | 20% tax credit only |
| Early repayment charges | 20% tax credit only |
Travel Costs (SA105 Box 27)
| Expense | Claimable? | Notes |
|---|---|---|
| Mileage to property | ✅ Yes | 45p/mile first 10,000, then 25p |
| Parking at property | ✅ Yes | |
| Train/bus fares | ✅ Yes | To visit property |
| Overnight stays | ✅ Yes | If property is far away |
| Travel from home to property | ✅ Yes | Unlike employment, this IS allowed |
Important: You can claim travel from home to your rental property. This is different from employment rules because your rental properties aren’t a “permanent workplace.”
Other Allowable Expenses (SA105 Box 29)
| Expense | Claimable? | Notes |
|---|---|---|
| Advertising for tenants | ✅ Yes | Rightmove, OpenRent, etc. |
| Stationery and printing | ✅ Yes | Tenancy agreements, etc. |
| Phone calls to tenants/agents | ✅ Yes | Business portion |
| Landlord association membership | ✅ Yes | NRLA, RLA |
| Training courses | ✅ Yes | Landlord-related |
| Software subscriptions | ✅ Yes | Property management, accounting |
| Bad debts written off | ✅ Yes | Rent you couldn’t collect |
| Tenant deposit protection | ✅ Yes | TDS, DPS, MyDeposits fees |
Replacement Domestic Items Relief
If you provide furnishings, you can claim the cost of replacing domestic items:
| Item | First Purchase | Replacement |
|---|---|---|
| Furniture (beds, sofas, tables) | ❌ No | ✅ Yes |
| White goods (fridge, washing machine) | ❌ No | ✅ Yes |
| Carpets and curtains | ❌ No | ✅ Yes |
| Kitchenware | ❌ No | ✅ Yes |
The rule: You can’t claim when you first furnish a property, only when you replace items. And you claim the cost of an equivalent item, not an upgrade.
What You Can’t Claim
| Expense | Why Not |
|---|---|
| Property purchase costs | Capital expenditure |
| Stamp duty | Capital expenditure |
| Property improvements | Capital (claim via CGT instead) |
| Personal use portion | Not “wholly and exclusively” |
| Your own time/labour | Not an expense |
| Clothing | Personal expense |
| Food and drink | Personal expense |
| Fines and penalties | Not allowable by law |
Simplified Expenses: The £1,000 Property Allowance
If your gross rental income is under £1,000, you don’t need to declare it at all.
If your income is above £1,000 but your expenses are minimal, you can claim the £1,000 property allowance instead of calculating actual expenses. This saves hassle but isn’t always the best choice:
| Scenario | Actual Expenses | Property Allowance | Better Option |
|---|---|---|---|
| £2,000 income, £300 expenses | £300 deduction | £1,000 deduction | Allowance |
| £10,000 income, £4,000 expenses | £4,000 deduction | £1,000 deduction | Actual |
You can’t claim both - it’s one or the other.
Consolidated Expenses (Under £90,000)
If your total rental income is under £90,000, you can report a single “consolidated expenses” figure to HMRC instead of breaking down by category.
This is simpler for record-keeping, but you still need to keep receipts and be able to justify the total if HMRC asks.
Record-Keeping Requirements
HMRC requires you to keep records for at least 6 years after the tax year they relate to. Under Making Tax Digital, these must be digital records.
For each expense, keep:
- Date
- Amount
- What it was for
- Receipt or invoice
Scanning receipts and storing them digitally counts - you don’t need paper copies.
How Portiqo Helps
Tracking expenses manually is tedious and error-prone. Portiqo automatically:
- Categorises expenses to HMRC-approved categories
- Calculates your Section 24 tax credit
- Stores receipt photos linked to each transaction
- Generates reports aligned with SA105 boxes
- Submits directly to HMRC under Making Tax Digital
Stop wrestling with spreadsheets. Join the waitlist and get MTD-ready before April 2026.
Have questions about what you can claim? Get in touch or check our MTD compliance guide.