What Expenses Are Tax Deductible for Landlords?

What Expenses Are Tax Deductible for Landlords?

  • What Expenses Are Tax Deductible for Landlords?

    As a landlord it is important to know expenses you can deduct, there a few things that you can claim to reduce your tax bill.

    There are many expenses that landlords are either required to pay or use services to improve their property, such as cleaning services, tenant agencies, repairs or letting agent frees.

     You can only deduct expenses that are considered ordinary and necessary in the line of business:

    Ordinary Expenses- Are “common and accepted” within your industry. For example, an ordinary expense for a landlord could be paying a contractor to fix something broken within the rental property.

    Necessary Expenses- Are “helpful and appropriate” to your business. For example, a necessary expense for a landlord could be advertising costs, paying for a service to find tenants or utilities.

    Things that are tax deductible:

    General maintenance and repairs to the property. You cannot, however, claim improvements/renovations on your property such as replacing a laminate kitchen worktop with a granite worktop.

    Water rates, council tax, gas and electricity

    Insurance, such as landlords’ policies for buildings, contents and public liability

    Costs of services, such as yard maintenance or cleaners.

    Travel expenses: landlords are allowed to deduct certain local and long distance travel expenses that are business related.

    Home office: If you have a section in your home that you use as an office for your business you may be eligible. How much you can claim will depend on how much space in your home you are using.

    Letting agent fees and management fees

    Legal fees for lets of a year or less, or for renewing a lease for less than 50 years

    Accountant’s fees


    You can also deduct 'replacement of domestic items relief'.  The government lists a number of examples of what domestic items qualify for this new relief. These includes

    Replacement beds

    Replacement carpets

    Replacement crockery or cutlery

    Replacement curtains

    Replacement fridges, washing machines etc

    Replacement sofas


    But you need to remember that if you are replacing a bed that was £400 but you bought a bed that was £600, then you will only be able to claim that £400.

    When you have new tenants moving into your property the total relief you can claim is £200 for curtains + £250 washing machine + £50 to dispose of old washing machine + £400 for a new bed, which amounts to £900.

    If you are a landlord with a portfolio in negative equity and feel there is no way out, call one of our experts at Landlord Debt Advisory and get your free consultation today! 




    The Balance

    This article was posted in Advice Tips & Advice

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