Can I include property repair costs on my tax return?

When determining if repair costs can be included on your tax return, it's important to consider: What state was the property in when you purchased it? What it in a fit state for renting out, or was some of the work carried out to get it to a fit state? What type of property you are renting out? Furnished or unfurnished? Are the expenses you have incurred repairs to the building/furniture or improvements or enhancements? For more information on how to proceed take a look at our detailed response on What tax relief can I claim on property repairs.

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5 things landlords need to know

Being a landlord can be difficult and it’s important to prioritise what you need to know. These top tops for landlords will help stay on top of your game, whether being a landlord is new to you or you’d just like a refresher.

Last updated 11 Dec 2023 | First published 6 Jul 2022

By Catherine Heinen, FCCA 2 min read

Landlords

1. Keep on top of your records

Keeping accurate and reliable records of your property income and expenses is key. It'll allow you to monitor how your property business is performing, and ensure you're keeping your profits in mind.

Using cloud software means you can update your accounting records from anywhere, even on your mobile phone. This means that you can monitor your profits and track expenses and ensure your property business thrives.

Reliable records also enable your accountant to prepare your self-assessment tax return smoothly and claim all allowable expenses against your income.

2. Stay up to date with the tax rules

Tax rules and legislation are always changing. Your accountant will stay up to date with these changes to ensure you are meeting your obligations.

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes in to force from April 2026. From this date, landlords earning over £50,000 from property must keep digital records and send quarterly reports to HM Revenue & Customs (HMRC). Landlords with property income exceeding £30,000 will need to meet Making Tax Digital requirements from April 2027, and those with property income exceeding £20,000 will need to meet MTD in due course.

3. Think about your business structure

Most properties are owned by individuals, and some landlords prefer to hold properties through a company. There may be tax benefits to this arrangement, but that is not always the case so it's important to seek financial advice. Always plan and discuss any strutural changes with your accountant before you make any decisions. Your accountant can work with you to build a long-term plan in connection with your business goals.

4. Maximise family allowances

Depending on your circumstances, owning a property with a spouse or civil partner that you live with may be good tax planning. If you consider changing property ownership, make sure you get the transfer of the property handled correctly and discuss tax planning opportunities with your accountant.

5. Report property disposals correctly

UK residents disposing of UK residential property that results in a CGT liability must pay and report Capital Gains Tax (CGT) by 60 days of completion.

Non-UK residents who dispose of UK land and property must report the disposal to HMRC regardless of whether there is tax to pay and also have 60 days from completion to report this to HMRC.

Keeping the following information will be useful when you sell the property, as you will need them to report your Capital Gain:

a log of capital expenditure
evidence of purchase price
evidence of estate agent, surveyor and legal fees
list of key dates, such as the period you lived in the property, the duration it was rented out, and the time it remained empty

How can we help?

At TaxAssist Accountant Olney we help many landlords in the same situation as you. We would love to speak to you to help you with your property business. Call us today on 01480 592002 or fill out our online enquiry form to arrange a free initial consultation.

Get help with your property business

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

01480 592002

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Frequently Asked Questions

If you have sold a property, or are thinking of selling a property, you may need to report this to HMRC and pay Capital Gains Tax (CGT). Properties used solely as your main residence are unlikely to have a CGT liability and the sale probably won't need to be reported to HMRC. However, if the property was rented out you may need to take action. If you are a UK resident and there is a CGT liability on the property sale you will need to report this to HMRC within 60 days of completion. If you are non-UK resident, you will need to report the sale to HMRC within 60 days of completion whether there is a CGT liability or not. Speak to an accountant who can calculate your CGT liability, look at tax reliefs and prepare your return to HMRC.

When determining if repair costs can be included on your tax return, it's important to consider:

What state was the property in when you purchased it? What it in a fit state for renting out, or was some of the work carried out to get it to a fit state?
What type of property you are renting out? Furnished or unfurnished?
Are the expenses you have incurred repairs to the building/furniture or improvements or enhancements?

For more information on how to proceed take a look at our detailed response on What tax relief can I claim on property repairs.

Yes, if you lived in the property as your main residence and let it out, you can claim both Private Residence Relief and Letting Relief.

Yes. From 6th April 2026, landlords with property income above £50,000 will have to consider Making Tax Digital (MTD) for income tax. If you have property income above £30,000 you will have to consider MTD for income tax from 6th April 2027 and above £20,000, from 6th April 2028.Find out more in our guide to MTD for landlords.

Last updated 11 Dec 2023 | First published 6 Jul 2022

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Catherine Heinen, FCCA

Catherine is a qualified accountant and technical content writer with experience working at mutliple accountancy practices in the UK top 50 accountancy firms according to Accountancy Age. Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.

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