Common expenses that can be claimed against rental income are: mortgage interest – even though there were new rules in April 2017; the management fees for the agent; maintenance of the building including provision of a cleaner; travel costs to visit the property. Sometimes the landlord pays for utilities (often between tenants) and these are tax deductible. The biggest area of uncertainty is usually building repairs because it is often arguable whether expenditure is genuine repairs or if it is improvements. e.g. if you refurbish the bathroom and replace a bath with a bath – that is an allowable expense. But if you add in a new shower, where there wasn’t one before, this is an improvement – which is not tax deductible. Since April 2016 (when the wear and tear allowance was abolished) a landlord can claim for like for like replacements of furniture and white goods – but not the initial purchase.
