# What landlord expenses are tax deductible?

> Quick answer · Last updated 4 July 2026

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## In short

Allowable expenses include letting agent fees, insurance, repairs (not improvements), ground rent, service charges, utility bills you pay, and travel to the property. Mortgage interest is not deductible — only a 20% tax credit applies.

Repairs restore the property to its previous condition; improvements (extensions, new kitchens beyond like-for-like) are capital and not deductible against rent.

Replace domestic items relief covers like-for-like furniture and appliances in furnished lets.

Keep receipts and a separate rental bank account for HMRC enquiries and Making Tax Digital.

## Related

- [Rental income tax UK](https://moneyguide.org.uk/benefits-tax/rental-income-tax-uk/)
- [Self Assessment expenses](https://moneyguide.org.uk/benefits-tax/self-assessment-expenses-guide/)

## Primary source

gov.uk/renting-out-a-property/paying-tax

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.