What expenses can I claim to reduce the tax on my rental income?
You are allowed to deduct certain expenses and allowances from your rental income (unless it’s under the Rent a Room scheme) to determine your rental income which is liable to tax. The expense must be incurred wholly and exclusively in renting out your property.
The expenses you can deduct from letting income include:
- letting agent’s fees
- legal fees for lets of a year or less, or for renewing a lease for less than 50 years
- accountant’s fees
- buildings and contents insurance
- interest on property loans
- maintenance and repairs to the property (but not improvements)
- utility bills such as gas, water and electricity
- rent, ground rent, service charges
- Council Tax
- services you pay for, such as cleaning or gardening
- other direct costs of letting the property, such as phone calls, stationery and advertising
If only part of an expense is incurred in renting out your property then only the relevant portion can be deducted from your rental income.
I hope that helps