Voice and visuals made with automated software, including AI.
Landlords can claim the day-to-day costs of running a let, such as repairs, agent fees, insurance and replacing a worn sofa. In 2026-27 you cannot claim improvements, the first furnishing of a property or the capital part of a mortgage.
The test is that a cost is "wholly and exclusively" for renting out the property. The lists below come from GOV.UK's guidance on working out rental income, checked on 16 October 2026, and apply to individual landlords in England.
Your landlord deadlines, handled
A compliance calendar for each property, with reminders before every certificate and your register deadline. Landlord Tax adds your Making Tax Digital figures and tax return, prepared for you to send.
Are you ready for Making Tax Digital? Check your start date and what to sort first. It’s free and takes a minute.
What you can and cannot claim
| You can claim | You cannot claim |
|---|---|
| General maintenance and repairs | Improvements, such as an extension or a higher-spec kitchen |
| Water rates, Council Tax, gas and electricity you pay | Buying the property |
| Landlord insurance: buildings, contents, public liability | The full mortgage payment (only interest counts, as a tax reduction) |
| Letting agent and management fees | Furnishing a property for the first time |
| Accountant's fees | Personal or private costs, such as private phone calls |
| Legal fees for lets of a year or less | Clothing, even if worn to a letting meeting |
| Ground rent and service charges | A security system where there was none before |
| Gardeners, cleaners and other services | |
| Phone calls, stationery and adverts for tenants | |
| The rental share of vehicle running costs | |
| Replacing furniture, appliances and kitchenware |
Repair or improvement?
GOV.UK says a repair "restores an asset to its original condition, sometimes by replacing parts of it." That is allowable. Capital spending is something used over a longer period, such as an extension or an upgrade, and it is not an expense against rent. Keep the receipts anyway: GOV.UK says capital costs may reduce Capital Gains Tax when you sell.
Replacing furniture and appliances
Replacement of domestic items relief lets you claim the cost of replacing furniture, furnishings, household appliances and kitchenware, in furnished, part-furnished or unfurnished lets. The new item must be for the tenant's use only, and the old one must no longer be available to them. It does not cover the first purchase, or a room let in your own home under the Rent a Room scheme.
The claim is the cost of the new item, plus delivery, installation and disposal costs, minus anything you got for the old one. A worked example: a new washing machine costs £350, delivery and fitting £30 and taking the old one away £20. You sell the old machine for £25. Your claim is £350 + £30 + £20 − £25 = £375.
If the new item is an upgrade, such as a sofa bed replacing a sofa, you can claim only what a like-for-like sofa would have cost.
The £1,000 alternative
Instead of claiming your actual costs, you can claim the £1,000 property allowance. It suits landlords with very low costs. You cannot use both, and you cannot use the allowance if you claim the tax reduction for mortgage interest.
What this means for you
A common way to overpay is missing small, regular costs: agent fees taken from rent, insurance renewals and the share of travel. A cost you do not record is a cost you pay tax on.
If you join Making Tax Digital (MTD) on 6 April 2027, each cost becomes a digital record with an amount, a date and a category. With property turnover under £90,000, you can send just total income and total expenses in your quarterly updates, but mortgage interest must still be a separate figure.
Steps to claim your expenses
- List every regular cost for each property: agent, insurance, ground rent, service charge, utilities you pay.
- Sort one-off spending into repairs, replacements and improvements, and keep improvement receipts for when you sell.
- Record replacements with the delivery, disposal and any sale proceeds of the old item.
- Keep mortgage interest apart from other costs.
- Compare your total costs with the £1,000 property allowance and use whichever is better.
- Check whether MTD applies to you with the free MTD check, and see the landlord section for more guides.
Hold your place on the landlord waitlist
We’ll email you when Landlord Tax starts, with the founding-member price while it lasts. No payment is taken. Landlord Compliance is open now.
Questions people ask
Can I claim for a new kitchen in my rental?
Only if it is a like-for-like replacement. Replacing a worn kitchen with a similar one is a repair. GOV.UK gives replacing a kitchen with one of a higher specification as an example of capital spending, which is not an allowable expense.
Can I claim for buying furniture for a new let?
No. Replacement of domestic items relief covers replacing an item, not the first purchase. The cost of furnishing a property for the first time cannot be claimed against rent.
Can I claim mileage to my rental property?
GOV.UK lists vehicle running costs, only the share used for your rental business, including mileage rate deductions. Keep a log of journeys made only for the letting.
Is mortgage interest an allowable expense?
Not for individual landlords. It earns a separate tax reduction at the basic rate instead: 20% for 2026-27 and 22% from 2027-28.
What if my expenses are more than my rent?
You make a loss. GOV.UK says it is set against profits from your other properties automatically, and any remaining loss is carried forward against future profits of the same rental business.
Sources
- Income Tax when you rent out a property: working out your rental income (GOV.UK)
- Renting out a property: Paying tax (GOV.UK)
- Property Income Manual PIM3210: replacement of domestic items relief (GOV.UK)
- Tax-free allowances on property and trading income (GOV.UK)
- Making Tax Digital for Income Tax: digital record-keeping direction (GOV.UK)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Landlord is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
- See what Righto Landlord does for you, and join the waitlist.
- Questions about this page? Email hello@rightolandlord.co.uk.