Allowable Expenses for Landlords: HMRC Deductions List 2026/27

HMRC lets landlords deduct a wide range of expenses from rental income before calculating tax. Getting this right can save you hundreds or thousands each year. The rule is simple: if the expense is wholly and exclusively for the rental business, you can probably claim it.

What Can You Deduct?

The main allowable expenses include mortgage interest (at the basic rate tax credit), repairs and maintenance, insurance premiums, letting agent fees, accountancy costs, travel to the property, and advertising for tenants. Our detailed landlord tax deductions guide covers every deductible expense with HMRC-compliant examples.

Common Mistakes That Cost Landlords Money

The biggest mistake is confusing repairs (deductible) with improvements (not deductible). Fixing a broken boiler is a repair. Upgrading to a smart thermostat is an improvement. Also, many landlords miss travel expenses, phone costs, and home office deductions. Use our buy-to-let tax calculator to estimate your liability accurately.

Reporting Your Expenses

All expenses go on the SA105 supplementary page of your self-assessment tax return. With Making Tax Digital coming for landlords earning over £50,000, you’ll soon need to report quarterly. Start keeping digital records now — it makes the annual return easier too.

Full guide coming soon.