Free Tool

Expense Checker

Type an item to see if it is Allowable (tax deductible now) or Capital (tax deductible later).

Painting & Decorating

Maintenance to keep property in good condition. Fully deductible.

✅ Revenue Expense

Boiler Repair

Fixing existing heating systems is a revenue expense.

✅ Revenue Expense

Boiler Replacement

Like-for-like is allowable. Upgrading to a better system is Capital.

⚠️ Depends

New Kitchen

If you upgrade the quality (e.g. laminate to granite), it is a Capital improvement.

❌ Capital Cost

Kitchen Repair

Replacing doors, fixing taps, or like-for-like swaps are allowable.

✅ Revenue Expense

Extension / Loft

Adds value to the property. Deduct from Capital Gains Tax when selling.

❌ Capital Cost

Furniture Replacement

Replacement of Domestic Items Relief covers sofas, beds, curtains.

✅ Revenue Expense

First Time Furniture

Furnishing a property for the first time is NOT tax deductible.

❌ Capital Cost

Gardening

Maintenance of existing garden is allowable.

✅ Revenue Expense

Landscaping

Creating a new garden or adding a patio is an improvement.

❌ Capital Cost

Letting Agent Fees

Fully deductible.

✅ Revenue Expense

Legal Fees (Tenancy)

Drafting leases or evicting tenants is allowable.

✅ Revenue Expense

Legal Fees (Purchase)

Part of the purchase cost. Save for Capital Gains Tax.

❌ Capital Cost

Mortgage Interest

Restricted to 20% tax credit (Section 24). Not a direct deduction.

⚠️ Depends

Insurance

Building, contents, and rent guarantee insurance are allowable.

✅ Revenue Expense

Council Tax

Allowable if paid by the landlord (e.g. during voids).

✅ Revenue Expense

Ground Rent

Deductible revenue expense.

✅ Revenue Expense

Travel

Only specific business trips (inspections). Commuting is not allowed.

⚠️ Depends

Phone / Broadband

Only the business proportion of the bill can be claimed.

⚠️ Depends

Accountancy Fees

Preparing rental accounts is fully deductible.

✅ Revenue Expense

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Why it matters

Getting this wrong can lead to fines. Claiming Capital items as Revenue is the #1 mistake landlords make on self-assessment forms.

The Golden Rule

Revenue Expenses restore a property to its original condition (e.g. fixing a roof). These are tax deductible immediately.

Capital Expenses add value or improve the property (e.g. adding a conservatory). These can only be deducted from Capital Gains Tax when you sell.