Which letting expenses are tax deductible?

Property Expert:
Stephen Ludlow
Director, ludlowthompson.com
Q: Which letting expenses can be off-set against tax?

Pic: Allowable letting expenses 

Stephen's Response:

Many letting expenses can be offset against tax on rental income so most letting agents will recommend that their clients seek professional tax advice.

Examples of rental tax deductibles are: -

  • Letting agent fees
  • Legal/agreement fees
  • Accountants fees
  • Building and Contents insurance
  • Ground rent
  • Repairs (not improvements)
  • Legal and accounting costs
  • Services e.g. cleaning, gardening, council tax, utilities (if the tenant doesn't pay for these)
  • Some mortgage loan interest
  • Wear and tear of contents
  • Unused personal allowances
  • Other direct costs of letting the property e.g. administration/phone calls, stationery and advertising
  • For furniture and equipment provided you can claim a 'wear and tear' allowance which is 10 per cent of the net rent.

As an alternative to the 'wear and tear' allowance, you can claim a 'renewals' allowance e.g. to buy new cutlery. You can find out about this at the below link.

For a list of non-allowable expenses have a look at the below Government website link.

Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser.


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