Deducting rental costs from rental income

Rental costs can be deducted from rental income from flats or houses. Some expenses can only be deducted in part or not at all. One thing to take into account is the effect of the amount of rent on deductions.

Deductions from rental income from flats

The following costs can be deducted from rental income from flats:

Costs need to be deducted from the income of the year during which they were paid.

Interest on mortgages and letting fees can only be deducted if rent is charged at market value. See also how to deduct interest on buy-to-let mortgages from capital gains.

Deductions from rental income from houses

The following costs can be deducted from rental income from houses:

Only costs that relate to the let part of a property can be deducted.

Interest on mortgages and letting fees can only be deducted if rent is charged at market value. See also how to deduct interest on buy-to-let mortgages from capital gains.

Partially deductible and non-deductible costs

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