Landlord Allowable Expenses: Everything You Can Claim in 2026

Claiming all your allowable expenses is the single biggest thing you can do to reduce your tax bill as a landlord. Yet many landlords miss legitimate deductions simply because they don't know what counts. Here's the definitive guide.

Revenue expenses vs capital expenses

HMRC draws a clear line between revenue expenses (day-to-day running costs, fully deductible) and capital expenses (improvements that add value, not directly deductible). Understanding the difference is critical.

Fully allowable revenue expenses

Repairs and maintenance

Fixing things that are broken or worn out: boiler repairs, plumbing fixes, roof repairs, repainting, replacing broken windows with like-for-like. The key word is repair — restoring to the previous condition, not improving.

Insurance

Landlord insurance, buildings insurance, contents insurance, rent guarantee insurance, and landlord liability insurance are all allowable.

Letting agent fees

Fees charged by letting agents for finding tenants, managing the property, collecting rent, and conducting inspections.

Legal and professional fees

Solicitor fees for renewing tenancy agreements, eviction proceedings, and lease disputes. Accountancy fees for preparing your tax return. Membership of landlord associations like the NRLA.

Ground rent and service charges

If your rental property is a leasehold, ground rent and service charges are allowable.

Council tax and utilities

Only if you (not the tenant) are liable for these. Common during void periods or in HMOs where bills are included in rent.

Advertising

Costs of advertising the property for rent — online listings, photos, floorplans.

Travel expenses

Mileage or transport costs for property visits, meeting tenants, collecting rent, or purchasing supplies. Keep a log of journeys.

Stationery and office costs

Property management software subscriptions (like Tendmere), phone calls, postage, printing.

The Replacement of Domestic Items Relief

Since April 2016, you can claim relief for replacing furnishings in a rental property — but only the replacement, not the initial purchase. This covers furniture, white goods, carpets, curtains, and crockery in furnished lets. The relief is the cost of a like-for-like replacement, not an upgrade.

What you CANNOT claim

• Improvements: Adding a new extension, converting a loft, or upgrading a kitchen beyond its original standard
• Mortgage capital repayments: Only the interest portion is relevant (and even that is now a 20% tax credit, not a deduction)
• Personal expenses: Your own accommodation, food, or clothing
• Initial furnishing costs: The first purchase of furniture for a new property

Mortgage interest (Section 24)

Since April 2020, mortgage interest is no longer a deductible expense. Instead, you receive a 20% tax credit on your mortgage interest payments. This means higher-rate taxpayers pay more tax than before Section 24 — one of the most significant changes for UK landlords in recent years.

Record keeping

HMRC requires you to keep records for at least 5 years after the 31 January submission deadline. Keep receipts, invoices, bank statements, and mileage logs. Digital records in MTD-compatible software like Tendmere satisfy HMRC's requirements and make your life much easier.

Maximising your deductions

1. Track everything in real time — don't reconstruct expenses at year-end
2. Photograph every receipt — where assisted extraction is enabled, review every proposed amount, date and category before saving
3. Separate bank accounts — makes reconciliation trivial
4. Review categories quarterly — catch miscategorised expenses early
5. Talk to a property tax specialist — generic accountants often miss property-specific reliefs