Can I Claim Repairs and Maintenance on My Rental Property

At Towerstone Accountants we provide specialist property accountant services for landlords property investors and individuals dealing with property tax and reporting obligations across the UK. This article has been written to explain Can I claim repairs and maintenance on my rental property in clear practical terms so you understand how the rules apply in real situations. Our aim is to help you make informed decisions avoid costly mistakes and know when professional advice is worthwhile.

This is one of the most common questions I am asked by landlords, and it is also one of the areas where HMRC sees the highest number of mistakes. Many landlords assume that anything they spend on a rental property is deductible, while others are overly cautious and fail to claim costs they are fully entitled to.

The reality sits in the middle. Yes, you can usually claim repairs and maintenance on a rental property, but only if the costs meet HMRC’s definition of a repair rather than an improvement. Understanding the difference is critical, because it affects not just what you can claim, but when you can claim it, and how it is treated for tax purposes.

In this article, I am going to explain clearly and practically what counts as repairs and maintenance, what HMRC considers an improvement, how the rules apply in real world situations, and how to claim these costs correctly on your tax return. I will also cover common grey areas, mistakes I regularly see, and how to protect yourself if HMRC ever asks questions.

By the end, you should feel confident about what you can and cannot claim, and why.

The basic principle HMRC uses

HMRC’s starting point is simple in theory, even if it can feel complicated in practice.

• Repairs and maintenance are generally allowable expenses

• Improvements are not deductible as rental expenses

Instead, improvements are usually treated as capital expenditure and may only be relevant when you sell the property.

The challenge lies in deciding which side of the line a cost falls on.

What HMRC means by repairs and maintenance

A repair or maintenance cost is one that keeps the property in its existing condition, or restores it to the condition it was in before damage or wear and tear occurred.

In other words, repairs are about fixing, not upgrading.

HMRC accepts that rental properties naturally deteriorate over time, and landlords are entitled to deduct the cost of putting things right as part of running the business.

Common examples of allowable repairs and maintenance

The following are typical examples of costs that are usually allowable as rental expenses:

• Fixing a leaking roof

• Replacing broken roof tiles

• Repairing gutters and downpipes

• Fixing plumbing issues

• Repairing boilers or heating systems

• Repainting walls due to wear and tear

• Replacing damaged floorboards

• Fixing doors, locks, and hinges

• Repairing fences or gates

• Mending electrical faults

These costs are generally deductible in full in the year they are incurred, provided they relate to the rental business.

Replacing items, repair or improvement?

One of the most common points of confusion is replacement.

Replacing something does not automatically make it an improvement.

HMRC accepts that replacing an item with a modern equivalent is still a repair, even if materials have improved since the property was built.

For example:

• Replacing single glazing with double glazing is usually treated as a repair

• Replacing an old boiler with a modern efficient boiler is normally a repair

• Replacing wooden windows with UPVC equivalents is often still a repair

The key test is whether you are replacing like for like in function, not whether the materials are identical.

When a replacement becomes an improvement

A replacement becomes an improvement if it enhances the property beyond its original standard, rather than simply restoring it.

Examples of improvements include:

• Adding an extension

• Converting a loft into a bedroom

• Installing central heating where none existed before

• Adding a second bathroom

• Upgrading a basic kitchen to a high end luxury kitchen

In these cases, the cost is capital in nature and not deductible as a rental expense.

Repairs versus improvements, the HMRC mindset

HMRC looks at the effect of the work, not just what was done.

They ask questions such as:

• Did the work merely restore the property

• Did it put the property back into a usable state

• Or did it significantly enhance the value or functionality

If the answer is restoration, it is usually a repair. If the answer is enhancement, it is usually an improvement.

Initial repairs, a key area where landlords get caught out

Initial repairs are one of the biggest traps for new landlords.

If you buy a property that is already in a poor condition, and you carry out work to make it fit to let, HMRC may treat those costs as capital, even if the work looks like a repair.

For example:

• Buying a run down property

• Replacing kitchens, bathrooms, or flooring before the first tenant moves in

• Making the property habitable for the first time

These costs are often treated as part of the cost of acquiring the property, not as deductible repairs.

Timing matters here. Repairs carried out after the property is let are more likely to be allowable than those carried out before the first letting.

Ongoing maintenance during a tenancy

Once a property is let, most routine maintenance costs are allowable.

This includes:

• Decorating between tenants

• Fixing wear and tear damage

• Replacing broken fixtures

• General upkeep to keep the property rentable

These costs are seen as part of the normal running of a rental business.

Wear and tear versus actual repairs

The old wear and tear allowance no longer applies to residential properties, but that does not mean you cannot claim costs.

Instead of a flat allowance, HMRC allows you to claim:

• The actual cost of repairing or replacing items

This means you claim what you spend, rather than a percentage.

Replacement of domestic items relief

For residential landlords, there is specific relief for replacing domestic items.

This covers items such as:

• Beds and mattresses

• Sofas and chairs

• Tables and wardrobes

• Carpets and curtains

• White goods

The relief allows you to deduct the cost of replacement, but not the original purchase cost.

Upgrades are allowed to a reasonable extent, but luxury upgrades may be challenged.

What about labour costs?

Labour costs linked to repairs and maintenance are generally allowable.

This includes:

• Plumbers

• Electricians

• Builders

• Decorators

• Handymen

As long as the underlying work qualifies as a repair, the labour cost usually qualifies as well.

Materials and supplies

The cost of materials used in repairs is also deductible.

For example:

• Paint and decorating supplies

• Replacement tiles

• Plumbing parts

• Electrical components

These should be claimed alongside the labour costs where relevant.

Repairs to common parts in blocks of flats

If you own a flat and pay service charges that include repairs and maintenance, the repair element is usually allowable.

However:

• You must exclude any capital contributions

• Sinking fund payments are usually not deductible

Service charge statements should ideally break this down, and if they do not, careful judgement is required.

What you cannot claim as repairs and maintenance

It is just as important to understand what you cannot claim.

These costs are generally not allowable as rental expenses:

• Extensions or structural alterations

• Improvements that increase the property’s value

• Capital renovations

• Initial repairs before first letting

• Personal use expenses

These costs may still be relevant for Capital Gains Tax in the future, but they are not deductible against rental income.

Mixed use properties and apportionment

If a property is partly rented and partly used personally, repairs and maintenance costs must be apportioned.

For example:

• You rent out one room in your home

• You live in part of the property

Only the rental proportion of the cost can be claimed.

The apportionment must be reasonable and consistent.

Record keeping, more important than most people realise

HMRC expects landlords to keep proper records.

You should retain:

• Invoices and receipts

• Descriptions of the work carried out

• Dates the work was done

• Evidence of when the property was let

Good records make it much easier to defend a claim if HMRC queries it.

How to claim repairs and maintenance on your tax return

For individuals, repair and maintenance costs are usually claimed on the property pages of your Self Assessment tax return.

They are included as:

• Allowable property expenses

The costs reduce your taxable rental profit, which in turn reduces your tax bill.

Limited companies and repairs

If a property is owned through a limited company, the principles are broadly similar, but the costs are deducted for Corporation Tax rather than Income Tax.

The repair versus improvement distinction still applies, and HMRC scrutiny is just as strong.

Common mistakes I see landlords make

Over the years, I see the same issues repeatedly.

These include:

• Claiming improvements as repairs

• Claiming initial refurbishment costs incorrectly

• Failing to apportion mixed use expenses

• Poor record keeping

• Being overly cautious and missing valid claims

Both overclaiming and underclaiming can be costly in different ways.

What happens if HMRC disagrees with a claim?

If HMRC disagrees with how a cost has been treated, they may:

• Disallow the expense

• Adjust your tax calculation

• Charge interest

• Apply penalties in serious cases

This is why understanding and documenting the nature of the work is so important.

How I advise landlords in practice

In real life, I advise landlords to ask one simple question before claiming a cost.

“Did this put the property back to how it was, or did it make it better than it was before?”

If it is the former, it is usually a repair. If it is the latter, it is usually an improvement.

I also advise keeping notes alongside invoices explaining what the work was for. Those notes can be invaluable years later.

Why getting this right matters

Claiming repairs and maintenance correctly can:

• Reduce your tax bill

• Improve cash flow

• Keep you compliant with HMRC

• Reduce stress during enquiries

Getting it wrong can have the opposite effect.

Final thoughts

Yes, you can usually claim repairs and maintenance on your rental property, and in many cases these costs are fully deductible against your rental income. The key is understanding the difference between a repair and an improvement, and applying HMRC’s principles consistently.

Most disputes in this area do not arise because landlords are trying to bend the rules. They arise because the rules are not well understood, particularly around replacements and initial repairs.

In my experience, landlords who take time to understand these distinctions, keep good records, and claim what they are genuinely entitled to rarely have problems. Those who guess, or assume everything is deductible, often find themselves having difficult conversations with HMRC later.

If you are unsure about a particular cost, especially where large sums are involved, getting advice before submitting your tax return is almost always easier than correcting things after HMRC has already taken an interest.

You may also find our guidance on Can I deduct letting agent fees from my rental income and How do I calculate my rental income profit useful when exploring related property tax questions. For a broader overview of property tax reporting and planning topics you can visit our property hub which brings all related guidance together.