What expenses can a landlord deduct from rental income?

Full answer

Allowable expenses that UK landlords can offset against rental income include: letting and management agent fees, buildings and contents insurance premiums, repairs and maintenance but not capital improvements, ground rent and service charges, council tax if paid by the landlord, utility bills paid by the landlord, advertising costs, accountancy fees, and travel costs to inspect or maintain the property. Since April 2020, mortgage interest relief for residential landlords has been replaced by a 20% tax credit on finance costs, meaning higher and additional rate taxpayers no longer receive full relief. The wear and tear allowance for furnished properties was abolished in 2016 and replaced by actual replacement cost relief. Capital expenditure such as extensions or converting a loft is not deductible against rental income but may reduce CGT on disposal.