Comprehensive landlord expenses list

Keeping on top of costs is part of the job when you let property. But when it comes to tax, it’s not enough to know what you spent, you also need to know how it’s treated. That’s why a clear landlord expenses list is so useful.

This guide is designed as a detailed rental property expenses list for UK landlords, with a crucial focus on the difference between Revenue expenditure (typically deductible against rental income straight away) and Capital expenditure (generally not deductible against rental income, but may be relevant when calculating Capital Gains Tax (CGT) if/when you sell).

At a glance (quick checklist):

• Revenue costs = day-to-day running costs and repairs (usually claimed against rental income now) 
• Capital costs =  expenditure connected with acquiring, disposing of or improving the property. Capital costs are not normally deducted from rental income. Some may be deductible when calculating Capital Gains Tax, but only where the relevant conditions are met. 
• If in doubt, keep the invoice and record why the work was done, then take advice. 

Note: Allowable expenses must be incurred wholly and exclusively for your rental business. Tax rules can be complex and depend on your circumstances (and the type of letting). Use this landlord expenses list as a structured reference and speak to an accountant if you’re unsure.

Scope: This guide is aimed mainly at individual landlords running ordinary UK residential property businesses. Different rules can apply to company landlords, partnerships, trusts, commercial property, overseas property and properties let at below-market rent.

Most individual landlords and partnerships with annual property receipts of £150,000 or less use the cash basis by default. Under the cash basis, income and expenses are normally recorded when the money is received or paid. Companies, LLPs and trustees generally use standard accounting rules instead.

The £1,000 property income allowance

Some landlords may be able to use the £1,000 property income allowance instead of deducting their actual expenses. You cannot normally claim the property income allowance and deduct actual expenses or other allowances against the same property income. Compare the two methods before completing your tax return.

Revenue vs Capital: the “quick test” landlords can use

Before you dive into this rental property expenses list, here’s a simple way to sense-check a cost:

Revenue (usually deductible now):
Costs that are part of running and maintaining the property as a rental business — for example, day-to-day expenses, regular bills, and repairs that keep the property in a lettable condition.

Capital (not usually deductible from rental income and only potentially deductible for CGT or under another relief:
Costs that create something new, add value beyond the property’s original condition, extend the property’s life significantly, or relate to acquiring or disposing of the property. Whether a cost can eventually be deducted for CGT will depend on the relevant conditions, including whether an improvement is still reflected in the property when it is sold.

As a general starting point, repairs are revenue and improvements are capital. However, the tax treatment depends on what was replaced, the condition of the property and whether the work restored the existing asset or created a significant improvement. The tricky bit is that some “repairs” include modern materials and still count as revenue — the detail matters.

Landlord expenses list (Revenue costs)

Use this section as your day-to-day landlord expenses list. These are common Revenue costs that may be allowable against rental income (where they’re wholly and exclusively for the rental business).

Letting, management, and admin

• Professional fees related to rental income (accountancy fees for rental accounts, bookkeeping, etc.) 
• Letting agent fees and property management fees 
• Tenant-find fees (advertising, marketing, referencing arranged by the agent) 
• Inventory and check-in/check-out costs (where used to support the letting) 
• Professional fees related to rental income (accountancy fees for rental accounts, bookkeeping, etc.) 
• Phone calls, stationery, and postage directly linked to the property business 
• Landlord association memberships (where relevant to managing the let) 
• Professional fees connected with purchasing or selling a property, or with other capital matters, may need to be treated as capital expenditure rather than a revenue expense. 

Repairs and maintenance (Revenue — when it’s a repair)

These are costs to restore or maintain the property, not upgrade it beyond what it was. This is one of the most important sections in any rental property expenses list.

Typical examples:

• Fixing leaks, gutters, and broken tiles 
• Repainting between tenancies (like-for-like redecorating) 
• Replacing broken internal doors, locks, handles 
• Repairing a boiler or replacing parts 
• Electrical repairs and minor remedial works 
• Garden maintenance (routine upkeep, not landscaping improvements) 

Safety, compliance, and certifications

• Gas Safety Certificate checks and related callouts 
• Electrical safety checks where required (and routine remedial works to keep compliant) 
• Fire safety equipment servicing/replacement (e.g., alarms) 
• Legionella risk assessment (where obtained and applicable) 
• HMO licence fees (where applicable) 
• Right to Rent checks (admin costs) 

Insurance and services

• Landlord insurance premiums 
• Service charges you pay (if you, not the tenant, are responsible) 
• Ground rent (where applicable) 
• Professional subscriptions directly connected to letting activity 

Utilities and running costs (when the landlord pays)

• Gas, electricity, water (where included in rent or paid during voids) 
• Council tax (during voids, if you’re liable) 
• TV licence or broadband (if you provide it as part of the let) 
• Cleaning and gardening between tenancies (where you pay) 

Replacing furnishings and appliances (special rule)

For furnished or part-furnished properties, you may be able to claim relief for replacing domestic items provided for tenant use (think: sofas, beds, curtains, white goods). The key point is that it’s about replacement, not the initial purchase to furnish the property.

The deduction is generally based on the cost of purchasing a modern equivalent of the old item, together with qualifying incidental costs such as delivery and disposal. Any money received from selling or part-exchanging the old item will normally reduce the amount claimed.

If the new item represents a significant upgrade, the additional cost of the improvement may not qualify. Fixtures such as baths, fitted cupboards, boilers and radiators do not fall within Replacement of Domestic Items Relief, although replacing them may instead qualify as a repair depending on the circumstances.

So, as part of your landlord expenses list, keep a separate note of:

• What item was replaced 
• When it was replaced 
• The cost of the replacement, installation and disposal, together with any amount received for the old item 

Travel (use carefully)

Travel costs can be a grey area. If you’re travelling wholly and exclusively for the rental business (e.g., inspections, meeting contractors), you may be able to claim — but keep strong records and avoid mixing with personal travel.

Finance costs: important, but not a normal “expense” for many landlords

For individual landlords with residential property, mortgage interest and other qualifying finance costs are not deducted from rental income in the same way as repairs, insurance or agent fees. Instead, relief is normally given as a basic-rate Income Tax reduction.

The reduction is generally calculated at the basic rate of 20%, but it is restricted to the lower of the qualifying finance costs, property business profits and adjusted total income. Finance costs that cannot be relieved because of these limits may be carried forward.

The restriction does not apply in the same way to rental properties owned through a limited company. Company landlords should obtain advice based on the company’s circumstances

So include these in your records alongside your rental property expenses list, but don’t be surprised if they’re treated differently to the rest of your landlord expenses list:

• Mortgage interest (not the capital repayment) 
• Loan interest (where linked to the rental business) 
• Qualifying arrangement fees and lending charges treated as finance costs 

Rental property expenses list (Capital costs)

Capital costs are not usually deductible against rental income. Instead, they’re typically relevant when calculating CGT, because they can potentially be added to the property’s “base cost” (depending on the type of cost and the situation).

Use this section as your Capital-focused rental property expenses list.

Buying and selling costs

• Property transaction tax paid on purchase: Stamp Duty Land Tax in England and Northern Ireland, Land Transaction Tax in Wales or Land and Buildings Transaction Tax in Scotland 
• Solicitors’ and conveyancing fees directly connected with the purchase or disposal 
• Surveyor and valuation fees directly referable to the acquisition or disposal 
• Estate agent fees on sale 
• Other qualifying professional and transfer costs directly connected with acquiring or disposing of the property 

Improvements and upgrades (classic Capital)

These are works that add value, add space, or upgrade beyond the property’s original condition. This is where many landlords misclassify items on a landlord expenses list, so keep invoices detailed.

Common examples:

• Extensions, loft conversions, structural changes 
• Installing central heating where none existed before 
• Full reconfigurations (moving kitchens/bathrooms, major layout changes) 
• Significant upgrades that go beyond a like-for-like replacement 
• Landscaping projects that materially improve the property 

Initial costs to get a property into lettable condition (often Capital)

If you buy a property and spend money before it’s in a rentable condition, those “first works” are often treated differently to ongoing repairs during a tenancy. Keep these costs separately within your rental property expenses list and get advice if you’re unsure.

The grey areas landlords trip over (and how to think about them)

This is where a checklist alone isn’t enough — the detail determines whether it’s Revenue or Capital. A good landlord expenses list should flag these “watch outs”.

Replacing a kitchen: repair or improvement?

• Revenue (often): replacing units on a like-for-like basis because the old kitchen is worn out 
• Capital (often): upgrading significantly (higher spec beyond modern equivalent), changing layout, adding extra features that materially improve value 

Windows, roofing, and “modern materials”

Using modern materials doesn’t automatically make it Capital. The question is whether you’re restoring what was there, or improving beyond that in a significant way.

“An entirety” vs a part

Replacing a small part of something is more likely to be a repair. Replacing the whole of an “entirety” can push it towards Capital. If you’re doing major works, keep the invoices detailed and itemised.

What landlords usually can’t claim (or should treat with caution)

A practical rental property expenses list also includes what not to put through as an expense.

• The capital repayment element of a mortgage 
• Private or personal costs (anything not wholly for the rental business) 
• Costs paid/reimbursed by the tenant 
• Fines and penalties 
• Improvements incorrectly recorded as “repairs” (this is a common red flag)

Making Tax Digital for Income Tax

Making Tax Digital for Income Tax began on 6 April 2026 for qualifying sole traders and landlords whose combined gross self-employment and property income exceeded £50,000 in the 2024–25 tax year. Those within scope must keep digital records and use compatible software.

The threshold is scheduled to fall to more than £30,000 from April 2027 and more than £20,000 from April 2028. These thresholds relate to qualifying gross income rather than taxable profit.

Record-keeping tips that make claiming easier

If you want this landlord expenses list to actually save you time (and stress), do this:

• Keep invoices/receipts for every cost (digital copies are fine) 
• Split your records into Revenue and Capital from day one 
• Make sure contractor invoices are itemised (especially where work mixes repair + improvement) 
• Note what the work was for, and whether it was during a void, between tenants, or mid-tenancy 
• If you ever use the property personally, keep clear apportionment records 
• Keep records digitally where you are within Making Tax Digital for Income Tax 
• Retain capital invoices and evidence for as long as they may be needed to calculate a future property disposal 
• Keep a clear calculation showing how mixed personal and business costs were apportioned

Records will normally need to be retained for several years after the relevant tax-return deadline, and potentially longer where a return is submitted late or an HMRC enquiry remains open. Capital records may need to be kept until after the property is sold.

A structured landlord expenses list is one of the simplest ways to stay organised — but the real value comes from categorising each cost correctly. If you get the Revenue vs Capital split right, you’ll claim what you’re entitled to against rental income, and you’ll also keep the right evidence for CGT if you sell in future. Keep this rental property expenses list to hand, update it as you go, and you’ll be in a much stronger position at tax time.

Are you looking for landlord insurance to protect your investment? Our team at CIA Landlords has the expertise to find the best quote for your needs. Feel free to visit our advice centre for more advice on being an effective landlord. Otherwise, make sure to get in touch with our friendly team of specialists at CIA Landlord Insurance on 01788 818 670.