Landlord allowable expenses (UK, 2026/27): what goes where
The property expense boxes with everyday examples, repairs against improvements, why mortgage interest is treated differently, and the £1,000 allowance.
The short version. Landlords deduct the running costs of a let property from the rent. Mortgage interest is not one of them: it gets a separate tax reduction. Repairs are allowable, improvements are not, and if you own a property jointly you deal with your share only.
Costs you can claim, and the box for each
These are the property expense boxes on the 2026 Self Assessment property pages (SA105), with the costs gov.uk lists as allowable. Where the form names no box, pick the one that fits and keep to it.
| Cost | What gov.uk says | Usual box |
|---|---|---|
| Letting agent and management fees | Allowable if you pay them yourself. | Box 27, Legal, management and other professional fees |
| Landlord insurance | Landlords' policies for buildings, contents and public liability. | Box 24, Rent, rates, insurance and ground rents |
| Ground rent | Allowable. gov.uk lists service charges alongside it. | Box 24. gov.uk does not say where service charges go on the form, so check the SA105 notes |
| Repairs and maintenance | General maintenance and repairs. A repair restores something to its original condition, and replacing a part with the nearest modern equivalent is still a repair. | Box 25, Property repairs and maintenance |
| Gardeners and cleaners | The costs of services, including their wages. | Box 28, Costs of services provided, including wages |
| Accountant's fees | Allowable. | Box 27, Legal, management and other professional fees |
| Legal fees | Allowable for lets of a year or less, or for renewing a lease of less than 50 years. | Box 27, Legal, management and other professional fees |
| Water rates, council tax, gas and electricity | Allowable if you pay them yourself. | No named box. Most people use box 29, Other allowable property expenses |
| Replacing a cooker, sofa or similar item | Domestic items relief covers the cost of replacing items in a let dwelling. If the new item is an improvement, only the cost of an item the same as the original counts. It is not available for the first purchase of items for a dwelling. | No named box. Most people use box 29, Other allowable property expenses |
Repairs and improvements
A repair restores an asset to its original condition, sometimes by replacing parts of it. Replacing a part of the property with the nearest modern equivalent is still a repair. An improvement adds something that was not there before, or alters, improves or upgrades something that was already there. Improvements are capital expenditure, which is not allowable against your rental income. Keep records of capital costs anyway, as they may matter for Capital Gains Tax when you sell.
Mortgage interest is not an expense
You cannot deduct the mortgage payment, and for residential lets you cannot deduct the interest from your rent either. Residential finance costs go in box 44 and get a tax reduction instead: 20% of the lowest of your finance costs (plus any brought forward), your property profits, or your income above the personal allowance. The reduction cannot create a refund, and finance costs you cannot use yet carry forward to later years of the same property business. The landlord tax calculator works it out.
Joint property: your share only
Property jointly owned by married couples and civil partners who live together is usually taxed in equal shares. For other joint owners, your share of the profit is usually based on the share of the property you own, unless you agree a different split. For Making Tax Digital, you only need digital records for your share, and each owner gets their own £1,000 property allowance against their share of the gross rent.
The £1,000 property allowance
The property allowance is up to £1,000 a year, used instead of deducting expenses. You cannot use it if you claim the finance cost tax reduction on a residential property, or in place of Rent a Room relief. It cannot create a loss. If your allowable expenses are higher than your income, claiming them may do better.
Making Tax Digital and categories
If your UK property turnover is under £90,000, you can record each transaction as just income or expense for Making Tax Digital. Landlords with residential property must still flag restricted finance costs. See what changes for landlords from April 2027.
Log rent and costs under the right box
The Landlord MTD Record Book costs £12 as a one-off download. It splits your costs into boxes 24 to 29, keeps finance costs separate, handles your share of joint property, and totals for each quarterly update.
Get the landlord record book, £12Questions people ask
Can I claim my mortgage payments as an expense?
No. The full mortgage payment is not an expense. For residential lets, mortgage interest is a finance cost, which gets a tax reduction at 20% instead of being deducted from your rent.
What is the difference between a repair and an improvement?
gov.uk says a repair restores an asset to its original condition, sometimes by replacing parts, and replacing a part with the nearest modern equivalent is still a repair. An improvement adds something that was not there before or upgrades something existing. Improvements are capital costs and are not allowable against rent.
Can I claim for replacing a sofa or a cooker in a let property?
Possibly. Replacement of domestic items relief covers the cost of replacing items in a let dwelling, when the old item is no longer available for the tenant to use. If the new item is an upgrade, you can claim only the cost of one the same as the original. It does not cover the first purchase of items for the property.
Should I use the £1,000 property allowance or claim expenses?
The allowance is used instead of expenses, not as well. You cannot use it if you claim the finance cost tax reduction on a residential property. gov.uk says that if your expenses are more than your income, it may be better to claim expenses.
General information, not tax advice. Which box a cost goes in depends on your own facts. Check with HMRC if you are unsure.
Checked against gov.uk on 8 November 2026. Sources: gov.uk, Income Tax when you rent out a property (working out your rental income); gov.uk, tax-free allowances on property and trading income; gov.uk, changes to tax relief for residential landlords; the 2026 Self Assessment property pages (SA105).