5 Allowable Expenses on Renting a House


Do you earn any income from property?

If so, the chances are that you have to complete a self assessment tax return.  When calculating your income from your rental property, HMRC allow you to deduct a number of tax expenses.  This helps you reduce your ‘profit’ from the rental income and means you pay less tax.

Our guide explains five of the allowable tax expenses you can claim on renting a house.

1. Repairs and Maintenance

Every property needs maintenance from time to time.  The property might need a lick of paint, a new floorboard or a new shower.  You may even have to replace old or damaged doors or windows.

Anything that is considered a ‘repair’ to the property is an allowable tax expense.  However, you should be sure that you understand the distinction between a ‘repair’ and an ‘improvement’ as you are not allowed to claim for home improvements.

For example, if you decided to extend the property by building a conservatory, the cost of this is not an allowable tax expense.  Replacing a leaking or old conservatory would generally be classed as a ‘repair’, however.  Ask HMRC for guidance if you are unsure.

2. Professional Fees

You can claim the cost of allowable professional fees as a property tax expense.  This includes legal fees for lets of a year or less, or for renewing a lease for less than 50 years.

You can also claim the cost of accountant’s fees – for preparing your tax return, for example – as a tax deduction.

3. Letting Agent’s Costs

If you let your property through a letting agent, the chances are that they will charge somewhere between 10 and 15 per cent of the monthly rental income as a fee.  They may also make a charge for finding a tenant.

You can claim letting agent’s costs on your tax return as an allowable tax expense.

4. Household bills

If you pay the utility bills of the property that you rent (water, electricity, gas) or you pay the Council Tax, then you can claim these as an allowable tax expense.

5. Mortgage and Insurance

These are arguably the two biggest tax expenses you will be able to claim when renting a house.

Firstly, you can claim the interest on any property loan used to buy the property.  You should remember that you can only claim the interest payments, not any capital payment.  If your ‘buy to let’ mortgage is arranged on a repayment basis (a ‘capital and interest’ mortgage), you will only be able to claim the interest element of your payment.

You can also claim the premiums for any buildings and contents insurance that you have for the rental property.


17 comments

  1. hi i am looking at renting out my proper says:

    hiya do you know if you can ofset other debts with regard to a business that was running but has debts? thanks!

  2. Sarah says:

    Can you claim storage fees for your furniture that your tenant does not wish to keep in the property?

  3. Piyush says:

    Can i add the lease extention premium towards expenses?

  4. kendogs says:

    i rent out my property on interest only and income is slight less than mortgage payment (about £40) do i owe any tax?

  5. janet says:

    Can you claim for the cost of furnishing a flat before letting it?

  6. singh says:

    my daughter pays rent to me is that classed as an income

  7. Peter says:

    I bought a house outright, although I was having personal loan without charging the house as a colleteral. I’ve lived there for 1 year before letting it out. 6 months later, I mortgaged the house to release capital for medical treatment, when the house was still let. Can I claim the mortgage interest as deductable expenses on rental income? Else, can I claim the interest on the personal loans? Thank you.

  8. sandra wilding says:

    I have left my old home for health reasons (stairs) and rented a flat from the council. I am hoping to rent out my house so that the rent will pay for the rent on my flat. Are there any legal implications to this

  9. Sue Finey says:

    I am a landlord and have so far this year had to replace part of the boiler, and broken window which together cost 450. I have paid for these on a credit card. I have also been given a bill for £3800 for a new roof (this is 1900 for each flat owner and I own 2) I have had trouble finding tenants and the rental account does not have any money in (although I now have tenants in both flats and they are ‘ticking over’). I was originally told the roof would cost 750 each flat and I have paid 750 for one of the flats from my own money. They now tell me more work was needed and I have to pay 1900 per flat. I dont have it. Can I take out a loan in my name to pay the repair bills and then pay the loan from the flat over 5 years. Will I be able to claim back on my tax over the five year period.
    Many thanks
    Sue Finey

  10. Brian says:

    What is the difference between mortgage monthly repayments and mortgage interest only payments when it comes to calcualting tax liabilities on a rented property?

  11. pwduct says:

    I’m self employed sub contractor, how much tax rebate would get back on éxpences

  12. Pay BEauvais says:

    What can I claim against rental property?

  13. Matt says:

    If instead of a mortgage I have a loan from a family member, with written repayment terms and a contract written and signed between the two of us, can I still claim the interest?

  14. Alison says:

    Is secured loan interest classed as an allowable expense. I rent out my property for £700pcm, interest only mortgage (£33pcm) & secured loan (£261pcm) with insurances cost £657 .. what would tax implications be

  15. Liz says:

    Are you able to claim for mortgage insurance?

  16. julian kisiel says:

    I let my house out at the moment with a income of £500 a month I have a mortgage of £31,000 with interest payments of £129 a month. I have savings of £10,000 gaining interest at 2.5%.
    My question is would I be better off paying the £10,000 off the mortgage

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