What expenses can a landlord deduct against UK rental income?

Common deductions include advertising for tenants, cleaning between tenancies, gardening, legal fees for renewing a short lease, and mileage or travel wholly for managing the property. Interest on a business loan used to fund the property is restricted for individuals rather than fully deductible, addressed separately from other expenses.

Replacing a domestic item such as a fridge, sofa or carpet with a broadly equivalent replacement is deductible in full under the replacement of domestic items relief, whereas the first purchase of such an item for a new letting is not.

Genuine repairs that restore a property to its previous condition, such as fixing a leaking roof or replastering a damp wall, are deductible revenue expenses. Works that go beyond repair to create something better or different, such as adding an extension or converting a garage into a bedroom, are capital and only relevant when the property is eventually sold.

Where a repair and improvement are combined in one job, HMRC expects a just apportionment between the two, and keeping contractor invoices itemised by task materially reduces disputes later.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.