Landlord Tax – What Expenses Can I Offset Against Rent To Reduce Income Tax?

It’s that time of the year where landlords will be paying particular attention to landlord tax relief on rental income.


HMRC published a very helpful property rental toolkit last December with a checklist that landlords can work through to determine whether or not certain expenses such as travel to the property, wear and tear, wages, letting and administration fees etc. can be deducted from the rental income to offset income tax.

The document can be downloaded here:

HMRC have published further information particularity useful for non-resident landlords, landlords that rent a room, furnished holiday lettings as well as receiving rent from a property outside of the UK available on their website:

When deciding on what expenses can be offset against the rental income to reduce income tax, you are advised to consider whether the expense is classed as making a contribution to a capital gain or a revenue expenditure.

A capital gain is when work is carried out to the property which makes it better than before i.e. an extension is added or new windows are installed.  This type of capital expenditure would be offset through Capital Gains Tax when the property is sold rather than against the rental income.

Revenue expenditure is when a landlord repairs a property, for example, replacing roof tiles blown off by a storm, these can generally be claimed against the rental income.

Further examples of common repairs that are normally deductible in calculating rental business profits and published by HMRC includes but is not limited to:

  • exterior and interior painting and decorating
  • stone cleaning
  • damp and rot treatment
  • mending broken windows, doors, furniture and machines such as cookers or lifts
  • re-pointing
  • replacing roof slates, flashing and gutters

Property tax can be a complex issue and we would advise you to seek assistance from a professional tax advisor if you are unsure about the information published within the HMRC guides.

If you have had experience in claiming on expenses to reduce income tax or would like to share your top tips with other landlords, please leave a comment below.

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