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What is Allowable expenses?
Allowable expenses are costs you can deduct from rental income because they are spent wholly and exclusively on letting the property. They reduce your taxable profit.
Why it matters to landlords
Common examples are repairs and maintenance, letting and management fees, insurance, ground rent and service charges, council tax and bills you pay during void periods, accountancy, and certificates like gas safety checks and EICRs.
Improvements that add value, the purchase price and mortgage capital repayments are not allowable expenses. Mortgage interest is handled separately under the finance cost rules.
Record each expense with a date, amount and category as it happens, so nothing is missed at the year end.
Allowable expenses for landlords →