Allowable Expenses for Buy-to-Let Landlords — The Complete 2026 List

What Makes an Expense Allowable?

HMRC permits landlords to deduct expenses from rental income provided they are incurred **wholly and exclusively** for the purposes of the rental business. Personal costs — or costs with a dual purpose — cannot be deducted, even in part, unless they can be clearly separated into the business and personal elements.

The distinction between a **repair** and an **improvement** is critical. Repairs restore an asset to its original condition and are fully deductible in the year they are paid. Improvements enhance the asset beyond its original state; these are capital expenditure and are not deductible against rental income (though they may reduce Capital Gains Tax when you eventually sell).

Fully Deductible Revenue Expenses

Repairs and Maintenance

Replacing a broken boiler like-for-like, fixing a leaking roof, repainting worn walls, repairing fencing — all deductible. Fitting a new kitchen that upgrades the original is an improvement; repairing the existing one is a repair.

Letting Agent and Management Fees

Fees paid to a letting agent for finding tenants, managing the tenancy, or both are fully deductible. This includes tenant referencing fees, renewal fees, and inventory clerk charges if the agent arranges them.

Buildings and Contents Insurance

Landlord-specific insurance premiums — buildings insurance, landlord liability insurance, rent guarantee insurance — are fully deductible. Standard home contents policies that mix personal and rental use are not.

Ground Rent and Service Charges

If you own a leasehold property, ground rent and service charges paid to the freeholder are deductible running costs.

Professional and Legal Fees

Accountancy fees for preparing rental accounts, legal fees for renewing a short-term lease (under 50 years), and debt recovery costs for unpaid rent are deductible. Legal costs for purchasing or selling the property are capital and are not deductible against income.

Advertising and Marketing

Costs of advertising a property to let — online portals, local press, signboards — are deductible in the year incurred.

Travel Costs

Reasonable travel to inspect the property, deal with a repair, or meet a tenant is deductible at HMRC's approved mileage rate (45p per mile for the first 10,000 miles in a personal vehicle for 2026/27). Commuting-style regular journeys may be questioned by HMRC.

Council Tax and Utility Bills

If you pay these on behalf of the tenant during a void period, they are deductible. If paid during the tenancy itself and you are contractually obligated to do so, they remain deductible.

Replacement of Domestic Items Relief

Since April 2016, landlords in furnished lettings can claim relief for replacing furniture, furnishings, appliances, and kitchenware — but **not** on the initial purchase. A like-for-like replacement is deductible; upgrading to a higher specification means only the equivalent cost of the original item is claimable. This is covered in full in our [replacement of domestic items guide](/guides/replacement-of-domestic-items-relief-explained).

What You Cannot Deduct

• **Capital costs** — purchasing the property, extending it, converting it.
• **Private or personal costs** — a proportion of a phone bill where the personal use is not separately identified.
• **Mortgage capital repayments** — only the interest element attracts the 20% credit under Section 24.
• **Depreciation** — HMRC does not permit depreciation as a deduction; the replacement relief above takes its place for domestic items.

Keeping Records

HMRC expects landlords to retain receipts, invoices, and bank statements for at least **six years** after the relevant tax year. Good record-keeping is also essential if HMRC opens an enquiry. A simple spreadsheet or dedicated landlord accounting software tracking income and expenses by category is sufficient for most individual landlords.

Use our [rental income tax calculator](/rental-income-tax-calculator) to enter your expenses and see the impact on your tax liability in real time.