If you’re renting out a property in Bristol, whether it’s a single let in Bedminster or an HMO in Fishponds – it’s important to understand what expenses you can claim back to reduce your tax bill to lower your taxable income. Since 2020 you’ve not been able to deduct any of your mortgage expenses from your rental income, but HMRC does allow landlords to deduct certain “allowable expenses” from their rental income before working out how much tax is owed.
Here’s a straightforward breakdown of what you can claim for in 2025. As always it’s worth talking to an accountant for your personal circumstances, especially if you own the home in your personal name. This will mean that your rental income is subject to income tax and may push you into the next tax bracket.
1. Letting Agent Fees
If you use a letting agent like us to manage your property, the fees you pay- including tenant find services, referencing, inspections, and ongoing management are all tax deductible. These are considered necessary costs for running your rental business.
2. EPC (Energy Performance Certificate)
Every rental property in Bristol must have a valid EPC rated E or above. If you’ve had to update or renew your certificate, you can claim this cost back as it’s part of your legal obligations. Currently a EPC is valid for 10 years, and costs about £100 per property. With the proposed EPC changes by 2030, these might change in required frequency, down to every 5 years. But also there are changes proposed to how the scores are calculated. By 2030 all rental properties should be at a C or above, depending on how the legislation gets passed and we think is likely to change.
3. Gas Safety Certificate
A legal must-have if your property has gas. Annual gas safety checks, typically costing around £60-£100, can be fully deducted from your rental income. This is a once a year expense, but is required to keep your property compliant.
4. Property Maintenance & Repairs
This includes things like:
- Fixing a leak in the roof
- Replacing a broken oven
- Repainting a room between tenancies
- Unblocking a drain or repairing a boiler
These are all day-to-day running costs, and HMRC lets you deduct them. What you can’t claim for is anything that improves the value of the property (like extensions or full refurbishments) as those are considered capital improvements. With the previously mentioned EPC changes, we will wait and see if improvements to your homes to improve the EPC rating are a deductible expense.
5. Landlord Insurance
Whether it’s buildings insurance or rent guarantee cover, anything you pay to protect your rental property is deductible.
6. Council Tax & Utility Bills (If You Pay Them)
If you cover council tax, gas, electric, water or broadband for your tenants, which is often the case in HMOs, you can deduct those costs in full.
7. Advertising & Marketing
Any money spent advertising your property on portals like Rightmove, OpenRent, or local platforms is deductible too. So are professional photography and floorplans. If you’re using a letting agent, then it’s just their management fee that you’ll be able to deduct.
8. Accountancy & Legal Fees
If you hire an accountant to file your property accounts or get legal advice on your tenancy agreements, those costs are allowable. Just make sure they relate directly to the rental business.
9. Travel Expenses
If you travel to your property for inspections, viewings or to meet contractors, you can claim mileage at the approved HMRC rate. For Bristol-based landlords managing properties across the city or even travelling in from outside, this can add up over the year.
A Note on Mortgage Interest
You can’t deduct your mortgage interest directly anymore. Instead, HMRC offers a 20% tax credit based on your interest payments. It’s not a full deduction but still helps reduce your tax bill.
Final Tip
Keep solid records – receipts, invoices, contracts, and mileage logs. If HMRC ever asks, you’ll want to be able to prove every claim.
If you’re unsure about a specific cost or want help managing your Bristol rental property more efficiently, we’re happy to talk. Just drop us a message – we’re based locally and specialise in helping landlords get the most from their portfolio.
