Buy to Let Allowable Expenses

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Reduce your tax bill by making sure you claim for all allowable expenses on your tax return for your Buy to Let property.

Here are some of the typical allowable expenses which many Buy to Let Landlords incur:

Maintenance and Repairs

You should be able to deduct most of the money you spend keeping your buy to let property in good order.  Typical allowable expenses are:

  • repairing water or gas leaks, burst pipes
  • repairing electrical faults
  • replacing broken windows, doors, gutters, roof slates/tiles
  • gardeners
  • repairing internal and external walls, roofs, floors
  • repainting and redecorating (but not improving) the property to restore it to its original condition
  • treating damp or rot
  • re-pointing, stone cleaning
  • hiring equipment to carry out necessary repair work
  • replacing existing fixtures and fittings, such as radiators, boilers, water tanks, bathroom suites, and kitchens, but not electrical or gas appliances

If you pay a service charge to cover the running costs of a rental property then this is also allowable against your rental profits.
Look out, you cannot claim for costs which may be classified as Capital Expenses – these are things which improve rather than maintain your property.  For example, an extension or replacing the carpet.

Note: if you have been a landlord for several years now, wear and tear allowance has now been abolished.  Find out more here.

Cost of Replacing Furniture & Furnishings

If you incurred any costs for replacing furniture, furnishings and appliances provided for tenants use then these items will be tax allowable.  Some typical examples are:

• Televisions
• Beds
• Sofas
• Dining furniture
• Soft furnishings
• Kitchen appliances

Insurance

Buildings and contents insurance are allowable expenses and can reduce your taxable rental income.


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Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.