What Expenses Can I claim as a Landlord in 2025?
Introduction
When someone first gets in touch with us we don’t dive straight into receipts, spreadsheets or tax codes. We start we start with a conversation.
The objective is simple, to get under the skin of your business, understand your short, medium and long term goals and figure out how we can make your numbers work harder for you.
Our aim is to give you the clarity and information you need at your fingertips to make decisions that keep you on the right trajectory.
Here are the five questions we ask every new client and why they matter:
Why This Matters
If you rent out a property in the UK, you’ll know that tax on rental income can eat into your profits quickly, the good news is that HMRC allows landlords to claim a range of expenses to reduce their tax bill.
The tricky part is knowing what can be claimed, what counts as a capital expense (more on that later) and what cannot be claimed at all, especially after the reforms to mortgage interest relief over the last few years.
Here’s a clear breakdown of what you can (and can’t) claim as a landlord in 2025.
Allowable Expenses
- Repairs and maintenance
Fixing a broken boiler, repairing a roof leak or repainting walls between tenants (note that this doesn’t include improvements such as adding an extension, which are capital costs)
- Insurance
Buildings, contents and landlords liability insurance are all allowable expenses
- Letting agent and management fees
Fees for tenant finding, property management and rent collection
- Accountancy fees
Costs of preparing your rental accounts and tax return
- Utilities and council tax (if you pay them)
Often relevant for short term lets
- Replacement of domestic items
Replacing furniture or white goods like sofas, beds and fridges (you can’t claim the original purchase, only the replacements)
- Travel Costs
Mileage or public transport to and from your rental property for management or maintenance purposes are allowable
Mortgage interest and Finance Costs
This is the area that landlords have to be careful around as the rules have changed in recent years.
Before 2020 landlords could deduct their full mortgage interest from rental income at their highest rate of tax, now you receive a 20% tax credit on mortgage interest and other finance costs.
The result is that higher rate taxpayers can no longer offset the full cost, whilst basic rate taxpayers are less affected, it’s important to budget for this shift if you haven’t already.
What You Can’t Claim
Some common expenses landlords assume are deductible but aren’t include:
- The full cost of mortgage repayments
Only the interest qualifies for tax relief via the 20% credit
- Capital Improvements
E.g. extensions, loft conversions, new kitchens and new bathrooms that are designed to upgrade and increase market value or rental yield, these are added to the property’s base cost for Capital Gains tax when you sell
- Personal Expenses
Your own travel, if it’s not linked directly to property management, or the value of your own time spent managing the property
Planning Ahead For 2025 and Beyond:
The rules for landlords have tightened in recent years and HMRC are looking more closely at claims. The key is to:
- Keep clear records and receipts for every expense
- Separate repairs (deductible) from improvements (capital)
- Track your mortgage interest carefully so you know what relief you’re entitled to
- Review whether your property income should sit in your personal name or within a limited company, an option more landlords are exploring in 2025
Final Thoughts
Claiming the right expenses can make a huge difference to your rental profits but the rules aren’t always straightforward
Still not sure if you’re claiming everything you’re entitled to or wondering whether a limited company structure could save you tax in the long run?
Feel free to get in touch, we work with landlords across the UK and we’ll take care of the numbers so you can focus on managing your properties.
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