Rental Income Allowed Expenses Guide

These are allowable expenses EXCLUDING FINANCE/LOAN/MORTGAGE INTEREST costs. 

• general maintenance and repairs to the property, not improvements (such as replacing a laminate kitchen worktop with a granite worktop)
• water rates, council tax, gas and electricity
• insurance, such as landlords’ policies for buildings, contents and public liability
• costs of services, including the wages of gardeners and cleaners
• letting agent fees and management fees
• legal fees for lets of a year or less, or for renewing a lease for less than 50 years
• accountant’s fees
• rents (sub-letting), ground rents and service charges
• direct costs such as phone calls, stationery and advertising for new tenants
• vehicle running costs (only the proportion used for your rental business)
• Expenses incurred solely in connection with running/maintaining the property