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Landlords – claiming maintenance and repairs costs

8 February 2024

Landlords claim allowable expenses for taxable rental profits, focusing on repairs as clarified by HMRC. Learn about eligible expenses and effective tax management for property ownership.

Landlords are able to claim for allowable expenses as a deduction from their rental income when calculating taxable rental profits to declare to HMRC. The expenses must relate wholly and exclusively for the purposes of renting out the property.

There is also a range of other types of expenses that can be claimed as a deduction when paid for by the landlord. This includes general maintenance and repairs to the property. It is important to note that this type of allowable expense includes the costs of maintenance and repairs to the property (but not ‘capital’ improvements).

HMRC’s guidance states that… a repair restores an asset to its original condition, sometimes by replacing parts of it.

Property repairs can include:

  • replacing roof tiles blown off by a storm;
  • replacing a broken-down boiler; and
  • redecoration between tenants to restore the property to its original condition.

Replacing a part of the property with the nearest modern equivalent is still a repair if the improvement is incidental to the repair, such as replacing a single-glazed window with a double-glazed window.

You cannot claim the costs for replacing furnishings or equipment in a property. These are not allowable as costs of maintenance and repairs but may qualify for replacement of domestic items relief.

Source: HM Revenue & Customs Tue, 06 Feb 2024 00:00:00 +0100

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