This advice is around expenses and helping you understand the basics of what you can and can’t claim. As a landlord, you should claim relevant property expenses as every penny spent on allowable property expenses can be deducted from your profits and therefore lower your tax payments. This starts with keeping on top of your admin and recording everything you spend, as well as filing receipts for activities related to letting, managing, and maintaining your rental property.

So, what sorts of things are landlords allowed to claim as expenses?

The most important thing to know is that any expenses you claim as an income tax deduction must have been incurred exclusively to run your rental property – or an expense incurred to earn income. Other expenses such as extension or refurbishment, that enhance a property’s value are usually capital expenses and would be deducted from the capital gain at the point of sale of the property instead.

Typically, revenue expenses can include:

• Fees for professional services such as agents, solicitors, or accountants
• Insurance cover
• Property repairs and maintenance
• Business costs such as phone calls, some travel or running an office
• Service charges for leasehold properties