If I’m renting my house, what expenses can I claim against rental income to minimise by income tax bill?
If you are a tax resident in the UK or you live abroad and are renting a UK property and you earn between £2,500 and £9,999 after expenses – or you earn £10,000 or more in a tax year – you must report your income to the HMRC. You will be required to pay tax on any profit made from renting out the property, less any deductions which are considered “allowable expenses”.
Expenses you can claim against rental income
You should seek professional advice about your expenses to ensure that they are considered “allowable” before making any declarations, however, the following would typically be considered “allowable expenses” when renting a property:
- Any agents’ fees
- Your accountants’ fees
- Interest on your mortgage or other property loans
- Ground rent or service charges paid for the property
- Any Council Tax which you pay
- Landlord and/or buildings and contents insurance
- Costs of any maintenance and/or repairs – although this does not include improvements
- Any utility bills (eg. gas and water) which you pay for
- Additional services, such as cleaning and window cleaning
- Property specific travel (eg. if you have to travel to the UK to meet your tenants or letting agent)
