Are landlord repairs tax deductible? Yes, if they're repairs
Yes. HMRC says allowable expenses include maintenance and repairs, and defines a repair as restoring an asset to its original condition, sometimes by replacing parts of it [1]. HMRC's examples include replacing roof tiles blown off in a storm, replacing a broken-down boiler, and redecorating between tenants to restore the property [1]. Improvements, such as an extension or a higher-spec kitchen, are capital and not deductible against rent, though you may set them against Capital Gains Tax later [1].
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Are landlord repairs tax deductible? Yes, when they restore part of the property to its original condition. HMRC allows the costs of maintenance and repairs as an expense against rental income, but not capital improvements [1]. The hard part is the line between the two, so this guide works through HMRC's own examples and the common grey areas.
Landlord repairs tax deductible list: what counts
HMRC gives these as property repairs [1]:
- replacing roof tiles blown off by a storm,
- replacing a broken-down boiler,
- redecoration between tenants to restore the property to its original condition.
Also allowable [1]:
- Nearest modern equivalent. Replacing part of the property with its modern equivalent is still a repair if the improvement is incidental, for example replacing a single-glazed window with a double-glazed one.
- Like-for-like fixtures. Renewing baths, washbasins or toilets is normally allowable as a repair to the building, as long as it's like for like.
- Small items. Cutlery, crockery, cushions, bed linen and similar, if they're low value, short-lived and replaced almost annually.
What isn't a repair
HMRC treats these as capital expenses [1]:
- adding something that wasn't there before, such as an extension,
- installing a security system where there wasn't one,
- altering, improving or upgrading something, such as replacing a kitchen with a higher-specification one,
- buying furnishings and equipment for the property.
Work before you let. If you buy a run-down or derelict property at a reduced price, or it wasn't fit to let, work to put it into a lettable state is likely to be capital, not repairs [1].
Repairs vs improvements: common cases
| Job | Likely treatment | Why |
|---|---|---|
| Boiler breaks, replaced with a similar modern boiler | Repair | HMRC's own example [1] |
| Single glazing replaced with double glazing | Repair | Nearest modern equivalent, improvement incidental [1] |
| Worn bathroom suite replaced like for like | Repair | Like-for-like fixture [1] |
| Basic kitchen replaced with a high-spec kitchen | Capital | Upgrade [1] |
| Loft conversion or extension | Capital | Adds something new [1] |
| Redecorating between tenants | Repair | HMRC's own example [1] |
| Alarm system where none existed | Capital | New addition [1] |
| Replacing a broken fridge with an equivalent | Replacement of domestic items relief | Separate relief, not a repair [1] |
| Making a derelict purchase lettable | Usually capital | Pre-letting works [1] |
These follow HMRC's guidance. Borderline jobs depend on the facts, so ask your accountant if you're unsure.
Furniture and appliances
Replacing furnishings or equipment isn't a repair, but from 6 April 2016 it may qualify for replacement of domestic items relief [1]. That covers items such as beds, wardrobes, curtains, carpets, fridges and televisions, but not the first purchase. If the new item is an upgrade, you can only claim the cost of an equivalent one [1].
Insurance payouts and deposits
If insurance covers part of a repair, you can only claim the part it didn't cover [1]. If you keep part of a tenant's deposit to pay for damage, you can only claim repair costs above the amount you kept [1].
Evidence: what to keep for each repair
Because the line between repair and improvement depends on facts, your evidence matters:
- the tenant's report of the problem, with the date,
- photos of the damage or fault before the work,
- the tradesperson's invoice saying what was done,
- photos after the work,
- proof of payment.
Records should be kept for at least 5 years after the 31 January filing deadline [1].
How Gaffy builds the record for you
Gaffy's repair workflow produces most of that evidence as a by-product. Your tenant reports the problem through the property's repair link, with photos and a timestamp. It sits in your maintenance inbox, where you update the status and log the outcome and what it cost. The invoice can go into the property's vault. So when you or your accountant decide whether a job is a repair, the before photos, the description and the cost are together.
Gaffy isn't accounting software and doesn't give tax advice. It's £12 a month for up to 5 properties, plus £4 a month for each additional property, with your first month free.
Repairs, MTD and quarterly updates
If you're in Making Tax Digital, repairs and maintenance go into the matching expense category in your software, and your quarterly updates send HMRC the category totals, not individual invoices [2]. Because each update is cumulative from 6 April, you can correct a miscategorised repair in a later update [2]. That's useful when you realise mid-year that a job was really an improvement.
Repairs you're legally responsible for
Tax treatment aside, many repairs aren't optional. In England, landlords must keep the structure, exterior and installations for water, gas, electricity, sanitation and heating in repair [3]. Meeting those duties promptly protects your tenant, your property and your position if a dispute arises, and the costs are generally allowable as repairs.
Quick test: repair or improvement?
Ask three questions. Is it restoring something that was there before? Is it like for like, or the nearest modern equivalent? Is any improvement incidental? If all three are yes, it's likely a repair [1]. If you're adding something new or upgrading, it's likely capital [1].
Keep the before photos
They're the easiest proof that a job restored something, rather than improving it.
People also ask
Are repairs to a rental property tax deductible?
Yes, maintenance and repairs are allowable expenses. Capital improvements aren't [1].
Is a new boiler tax deductible for landlords?
Replacing a broken-down boiler is HMRC's own example of a repair [1].
Can I claim for a new kitchen in my rental?
A like-for-like replacement may be a repair. A higher-specification kitchen is capital [1].
Is redecorating tax deductible for landlords?
Redecoration between tenants to restore the property is allowable [1].
Are repairs before letting tax deductible?
Work to make a run-down property lettable is usually capital [1].
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FAQ
Can Gaffy tell me if a job is a repair or an improvement?
No. We keep the evidence. Your accountant makes the call.
Can I log the cost of each repair in Gaffy?
Yes, against the property.
Sources
- HMRC, Work out your rental income when you let property (ww.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income)
- HMRC, Use Making Tax Digital for Income Tax: send quarterly updates (ww.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates)
- Landlord and Tenant Act 1985, section 11 (ww.legislation.gov.uk/ukpga/1985/70/section/11)