Rental property repairs or improvements: which costs can landlords deduct?
Published 26 October 2026. A practical landlord guide based on HMRC guidance checked today. These are existing rules, not a new relief announced today.
Arranging autumn maintenance at a rental property? An invoice labelled “repairs” does not settle the tax treatment. What the work actually achieves matters. This guide focuses on classifying expenses in an ordinary property rental business.
Repairs normally restore the existing asset
Ordinary repairs for the rental business can normally reduce taxable profits. Examples include decorating, fixing broken windows and replacing storm-damaged roof tiles. The key distinction is restoring the existing asset rather than making a significant improvement.
Improvements and mixed projects
An extension or substantial improvement is normally capital expenditure, rather than an ordinary deduction from rental profits. Using broadly equivalent modern materials does not automatically make work an improvement. A reasonable split may be possible where a bill includes distinct repair and capital works. Work on a recently purchased, dilapidated property needs particular review.
Furniture, appliances and insurance
Replacing furniture or appliances may fall under separate replacement of domestic items relief; initial purchases do not qualify for that relief. Repair expenditure reimbursed by insurance cannot also be deducted. Expenses must relate to the rental business.
Build a useful evidence file
Request an itemised quotation before work starts. Afterwards, retain the invoice, payment evidence, before-and-after photographs and a short explanation of the fault. If the contractor completed different types of work together, ask for a clear breakdown of the prices.
Do not put an entire refurbishment bill into repairs simply because of its description. Discuss the actual work and supporting documents with ZipTax before filing. A review of your individual circumstances helps establish an appropriate tax treatment.
