“Why is myneighbor pocketing £500 more after tax, even though we earn similar rental income?”
Last month, a landlord was having afternoon tea with a close friend who owns the property next door in London. They started chatting about their rental returns—and to her surprise, her friend’s post-tax income was nearly £500 higher!
It turned out her previous letting agent never mentioned “Allowable Expenses”—the legitimate deductions that landlords can claim under UK tax law.
letukhome reminds all landlords: If your expenses are solely for rental purposes and meet HMRC guidelines, they can be deducted from your rental income.
Whether you're a first-time landlord or an experienced investor, this checklist can help you reduce your tax bill and avoid common pitfalls. Save it now!
Finance-Related Expenses
✔ Deductible: Mortgage interest, loan arrangement fees
⚠ Limit: Since 2020, only a 20% tax credit is allowed (not full deduction)
Property Operation Expenses
Agent/Professional Fees: Letting fees, accountant filing charges
Tenant Acquisition Costs: Advertising, tenant referencing fees
Insurance & Charges: Landlord insurance, ground rent, service charges
Utility Bills: Water, electricity, gas (if paid by landlord), Council Tax during vacancy
Maintenance & Routine Repairs
✔ Deductible: Plumbing, wall repairs, broken windows, regular cleaning
✘ Not deductible: Property extensions, initial purchase of furniture/appliances
letukhome Reminder:
Keep all relevant receipts and records. The UK tax year runs from April 6 to April 5, with tax returns due by January 31 the following year.
Feeling overwhelmed with rental management?
letukhome offers end-to-end letting solutions for landlords.
If you're a landlord or tenant with rental-related questions, message us at letukhome! With years of experience in the UK property market, we provide seamless, full-service support—making property letting stress-free and secure.
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