---
title: "Landlord Tax Deductions Checklist: UK 2026/27"
description: "This **2026/27 landlord tax deductions checklist** covers the main day-to-day costs that may reduce taxable rental profit. A cost is not allowable merely because it relates to a property: it must satisfy the property-business rules, exclude private use and be…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/what-expenses-can-landlords-deduct-from-rental-income-for-tax-purposes/"
updated: "2026-08-12"
category: Landlord
---

# Landlord Tax Deductions Checklist: UK 2026/27

This **2026/27 landlord tax deductions checklist** covers the main day-to-day costs that may reduce taxable rental profit. A cost is not allowable merely because it relates to a property: it must satisfy the property-business rules, exclude private use and be recorded under the correct accounting basis.

For repair-versus-improvement decisions and detailed examples, use our separate [allowable versus capital costs guide](https://www.accountingfirms.co.uk/knowledge-bank/what-constitutes-allowable-expenses-for-landlords/).

## Advertising and tenant-finding costs

Advertising vacancies, tenant referencing, credit checks and routine letting-agent fees are generally deductible when incurred for the rental business. Costs connected with acquiring the property itself are capital.

## Accountancy and bookkeeping

Fees for preparing rental accounts, bookkeeping and routine tax compliance can qualify. Costs of preparing the personal parts of a tax return, defending careless or deliberate inaccuracies, or advising on a property purchase may need to be excluded or apportioned.

## Cleaning, gardening and property services

Cleaning common areas, gardening, pest control, refuse services and similar tenant services can be allowable where the landlord bears the cost and includes related service income. Private work at the landlord’s home is excluded.

## Council tax, water and utilities

Deduct council tax, water rates, gas and electricity where the tenancy makes the landlord responsible—for example, during void periods or for some houses in multiple occupation. Do not claim amounts paid and ultimately borne by the tenant without recording the matching reimbursement.

## Insurance

Landlord buildings, contents, rent-guarantee and public-liability insurance premiums can qualify to the extent they protect the rental business. Life cover and private policies are not normal property expenses.

## Legal and professional fees

Routine legal costs for short leases, debt collection and qualifying lease renewals may be revenue expenses. Conveyancing, survey and legal fees for buying or selling a property are capital and belong in the acquisition or Capital Gains Tax records. Fees for a first long lease can also be capital.

## Maintenance and repairs

Painting, damp treatment, replacing broken roof tiles, repairing windows and restoring worn components are normally revenue costs. An extension, conversion or significant improvement is capital. Work required immediately after buying a dilapidated property may form part of the capital acquisition cost.

## Mortgage interest and finance fees

Individual residential landlords usually cannot deduct mortgage interest as an ordinary expense. Qualifying finance costs normally generate a 20% basic-rate tax reduction, subject to limits. Capital repayments are never deductible. Companies and commercial property businesses have different rules.

See our [mortgage-interest tax-relief guide](https://www.accountingfirms.co.uk/knowledge-bank/how-does-mortgage-interest-tax-relief-work-for-landlords/).

## Replacement domestic items

Relief can cover the replacement—not the initial purchase—of furniture, furnishings, appliances and kitchenware supplied to tenants. The claim is generally limited to a reasonable modern equivalent plus qualifying incidental costs, less disposal proceeds. Read our [replacement domestic items guide](https://www.accountingfirms.co.uk/knowledge-bank/are-there-tax-reliefs-available-for-replacing-domestic-items-in-rental-properties/).

## Travel and vehicle costs

Necessary travel to inspect, maintain or manage property can qualify. Keep mileage logs, dates, destinations and business purposes. Ordinary private travel, fines and unsupported estimates are excluded. The method used must be consistent with the applicable cash-basis or traditional-accounting rules.

## Office, phone and software

Property-management software, stationery, postage, business calls and an identifiable share of home-office running costs can qualify. Apportion mixed-use phone or internet bills on a reasonable basis. Large equipment purchases may require separate capital or cash-basis treatment.

## Training and subscriptions

Subscriptions to relevant landlord associations and training that updates existing property-business knowledge may qualify. Education that creates an entirely new business or professional capability is less likely to be revenue expenditure.

## Bad debts and unpaid rent

Under the cash basis, rent is generally recognised when received, so unpaid rent has not normally been taxed and there is no separate bad-debt deduction. Under traditional accounting, a genuinely irrecoverable amount previously recognised may require an adjustment.

## Costs landlords normally cannot deduct

- the property purchase price and SDLT;
- extensions, conversions and capital improvements;
- mortgage capital repayments;
- private or family expenditure;
- fines and penalties;
- the value of the landlord’s own time;
- depreciation of residential property and ordinary furnishings;
- expenses already reimbursed or claimed elsewhere.

## Property allowance comparison

An individual may choose the £1,000 property allowance instead of actual expenses where eligible. You cannot claim both. The allowance is attractive when actual deductions are below £1,000 but can waste higher expenses or a property loss. See our [property allowance guide](https://www.accountingfirms.co.uk/knowledge-bank/what-is-the-property-allowance-for-landlords/).

## Cash basis timing

Most eligible unincorporated landlords with property receipts of £150,000 or less use the cash basis by default, recording receipts and payments when money changes hands. Traditional accounting recognises income earned and expenses incurred. Timing can change the year of deduction, especially for year-end invoices and advance payments.

## Expense evidence checklist

- supplier invoice or receipt;
- proof of payment;
- property and tenancy to which it relates;
- business-purpose note;
- private-use apportionment;
- repair-versus-improvement explanation;
- disposal proceeds for replacement items;
- consistent expense category in the ledger.

Keep digital copies and reconcile them to bank and letting-agent statements. Our [landlord records guide](https://www.accountingfirms.co.uk/knowledge-bank/what-records-should-landlords-keep-for-tax-purposes/) explains retention periods.

## Official guidance

- [GOV.UK: landlord tax and expenses](https://www.gov.uk/renting-out-a-property/paying-tax)
- [HMRC: working out rental income](https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income)
- [HMRC: repairs overview](https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2025)
- [HMRC: legal and professional costs](https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120)

*This 2026/27 checklist is general information. Tax treatment depends on the exact transaction.*