What expenses can I claim for my rental property?

In order to maximise your profits as a landlord, it’s important that you help keep your tax liability as low as possible by claiming all allowable expenses.

As a basic rule of thumb, when it comes to self-employed income tax deductions, you can claim any costs that have been incurred exclusively for the purpose of running your rental business and earning your income as a landlord. So that’s the costs involved in the day-to-day letting, management and maintenance of your property.

Here’s an overview of what’s included:

General business costs
For example:

• Mileage costs for travelling to and from the property
• Phone calls to tenants and agents
• Office costs – including if you work from home
• Advertising to find a tenant

Insurance
That’s your rental property buildings and contents insurance, as well as any rent guarantee insurance.

Maintenance services, e.g. gardening and cleaning

Repairs and replacements for fittings and furnishings
What you can claim on your tax return as ‘revenue’ expenses are things like kitchen and bathroom repairs and replacing pieces of furniture that have suffered wear and tear. If you are upgrading elements of the property, that is likely to be classed as a ‘capital’ expense, which can be claimed against capital gains when you sell.

Ground rent and service charges for leasehold properties

Council tax and utility costs while the property is vacant
If the property is temporarily empty, some councils may allow you to claim the cost of council tax and any utility bills incurred while you’re waiting for a new tenant to move in.

Professional fees
This includes the cost of your property tax accountant and/or bookkeeper and letting/management fees charged by your agent. It does not include fees incurred in buying or selling – e.g. surveyor’s and solicitor’s fees - those can be deducted from your capital gains liability when you sell or dispose of the property.

Property tax is notoriously complicated, so it’s well worth consulting an expert in the field. Even if you have a trusted accountant or financial adviser, they may not specialise in property tax, so do seek advice from a professional who’s used to working with landlords. We offer an in-house tax service to our landlords, to alleviate any confusion or unnecessary stress. If you have any questions about what you can claim as a landlord, feel free to get in touch with your local branch who will be happy to help.