Allowable Expenses for Landlords: Complete Guide for 2026

If you want to keep your rental profits healthy, knowing the ins and outs of allowable expenses for landlords is pretty much essential. 

This guide explains the allowable expenses for landlords in the 2026/27 tax year, including what you can claim and what you cannot.

If you would rather leave the calculations and paperwork to someone else, our specialist accountants at Cheap Tax Return can help you make sure your eligible expenses are accounted for.

What Are Allowable Expenses for Landlords? 

Allowable expenses for landlords are the everyday costs that HMRC lets you subtract from your rental income. You only pay tax on your net profit, not the total amount of rent you collect.

This lowers your overall taxable profit and reduces your total tax liability. 

The cost must be wholly and exclusively for the purpose of renting out the property. If an expense is partly personal and partly for the rental, you can usually only claim the rental-related part.

What Expenses Can Landlords Claim?

The good news is that there are several categories of landlord allowable expenses that may qualify for tax relief.

Here is the main list of landlord allowable expenses. 

Property Running Costs

• Letting agent and management fees
• Cleaning and gardening for the property
• Ground rent and service charges
• Council tax, gas, electricity and water that you pay (for example during empty periods)
• Rent you pay if you sublet a property

Repairs And Maintenance

• Fixing a leaking roof or broken boiler
• Repainting and redecorating
• Repairing damaged flooring or fences
• Pest control

Insurance

• Landlord buildings and contents insurance
• Rent guarantee insurance
• Public liability cover

Professional costs

• Accountancy fees for your rental accounts and tax return
• Legal fees for new lets of under a year
• Legal fees for renewing a lease of under 50 years
• Costs of evicting a tenant

Safety And Legal Costs

• Gas safety certificates
• Electrical safety checks (EICR)
• Smoke and carbon monoxide alarms
• Energy Performance Certificates
• Licences, such as HMO or selective licensing

Other Landlord Tax Deductible Expenses

• Advertising for tenants
• Bank charges on a dedicated rental account
• Landlord software and subscriptions
• Landlord association membership fees
• Travel to visit the property

Can Landlords Claim for Repairs and Maintenance?

Yes, repairs are classic landlord tax deductible expenses. However, there is a massive difference between fixing something and improving something.

You can claim for regular maintenance that keeps the property in its original condition. For example, fixing a leaking pipe, painting a bedroom, or replacing broken roof tiles are all fine.

But if you decide to pull down a standard conservatory and build a massive brick extension, that counts as a capital improvement. Capital expenses cannot be used to lower your ongoing income tax bill, though they might help reduce Capital Gains Tax when you sell the property later.

What Is the Difference Between Repairs and Improvements?

This is where most mistakes happen. It matters because repairs are an allowable expense, but improvements are not.

A repair puts something back to how it was. An improvement makes the property better than before.

There is a bit of a grey area here. If you replace something with a modern equivalent because the old type is no longer made, that can still count as a repair. Double glazing is a common example.

The good news is that capital improvements are not wasted. You can deduct them from your profit when you sell the property, which reduces your Capital Gains Tax bill.

Can Landlords Claim for Replacing Furniture and Appliances?

Yes, in many cases. This is called replacement of domestic items relief.

If you replace an item with something similar, you can claim the cost of the new one. For example, cookers, fridges, washing machines, carpets, curtains, beds and sofas. It works for furnished, part-furnished and unfurnished lets.

Just remember that you cannot claim the cost of the very first item you buy when you furnish a property for the first time. And if the replacement is clearly better, you can only claim the like for like part.

The old wear and tear allowance disappeared back in 2016. So this relief is now the way to claim for furniture.

Can Landlords Claim Mortgage Interest as an Expense?

You cannot claim your monthly mortgage payments as a direct expense against your rental income anymore.

Instead, you receive a 20% tax credit for your property finance costs. This means that while you cannot use mortgage interest to lower your gross rental income directly, the credit still helps reduce your final tax bill if you are a basic rate taxpayer. 

If you are a higher rate taxpayer, this rule means you will pay significantly more tax than you used to years ago.

Can Landlords Claim Travel Costs?

Yes, if the trip is for the rental business, it is an allowable expense for landlords. For example, visiting the property to check on repairs, meeting a contractor or collecting rent in person.

You have two options for car trips. You can use the mileage rates, which are 45p per mile for the first 10,000 miles in the tax year and 25p per mile after that. Or you can claim the actual running costs and work out the business share. Most landlords find the mileage method easier.

You can also claim public transport tickets, parking and tolls for the trip. A weekend away that happens to include a quick property check is another matter. Only the genuine business part counts.

Keep a simple mileage log. Date, place and reason is enough.

What Expenses Can Landlords Not Claim?

Knowing what is not claimable is just as useful.

The following costs are generally not allowable as ordinary rental expenses:

Some capital costs may be relevant to Capital Gains Tax when you sell the property. That is different from deducting the same cost from your rental income every year.

If you are unsure about a particular cost, check its treatment before including it in your tax return.

What Has Changed for Landlords in 2026/27?

Quite a bit, actually. Here are the changes worth knowing about this tax year.

Making Tax Digital for Income Tax. From 6 April 2026, landlords and sole traders with combined gross income over £50,000 must follow the new rules. Your qualifying income was worked out from your 2024/25 tax return. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

Under Making Tax Digital you need compatible software. You send HMRC a quarterly update. The 2026/27 deadlines are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. You then send a final declaration by 31 January 2028.

HMRC has said it will take a softer approach to late quarterly updates in the first year. Still, it is worth getting set up properly now rather than later.

Furnished holiday lets. The special furnished holiday lets tax regime ended on 6 April 2025. If you run holiday lets, they are now treated like other rental property. That means no capital allowances on furniture and equipment, and the mortgage interest restriction applies.

Renters’ Rights Act. In England, the main tenancy reforms started on 1 May 2026. Section 21 “no fault” evictions have ended, and periodic tenancies are now the norm. This does not change which costs are allowable. It might change your costs though, such as legal fees if you need to regain possession.

What Records Do Landlords Need to Keep?

You must keep records of your income and expenses. HMRC can ask to see them, so do not leave it to the last minute.

Keep these:

• Rent received, with dates and amounts
• Receipts and invoices for every expense
• Bank statements for your rental account
• Tenancy agreements
• Mileage logs
• Letting agent statements
• Mortgage statements showing interest paid

The rule is to keep them for at least five years after the 31 January deadline for that tax year. A separate bank account for rental money makes everything much easier. Photos of paper receipts are fine too.

Get Your Landlord Tax Return Right With Cheap Tax Returns

At Cheap Tax Returns, we help landlords report their rental income and claim eligible expenses without making the process harder than it needs to be. 

Our team can help you organise your figures, review your property expenses and prepare your Self Assessment tax return. 

If you have several rental properties, mortgage interest or a mix of repairs and improvements, getting the figures checked can save time and help you avoid mistakes. 

We provide an online service, so you can get support wherever you are in the UK.

Ready to sort out your landlord tax return? Get an instant quote or book a meeting.

The Bottom Line

Allowable expenses for landlords are one of the easiest ways to keep your tax bill down. 

The trick is knowing what counts and keeping the paperwork to prove it.

Claim your repairs, agent fees, insurance and safety checks. Leave out improvements and personal costs. 

Remember the mortgage interest credit and keep an eye on Making Tax Digital. 

If you are ever unsure about allowable expenses for landlords, a quick chat with an accountant can save you far more than it costs.