The short answer
Legal costs of running the letting are allowable: tenancy agreements, evictions and collecting unpaid rent. Legal costs of buying or selling the property are capital.
The like-for-like part is a revenue cost that reduces your rental profit. Any improvement element is capital: it gets no income tax relief but is added to the property's cost when you work out Capital Gains Tax.
What you can and can't claim
| You can claim | You can't claim |
|---|---|
| Drawing up or renewing tenancy agreements (leases under one year) | Conveyancing when you buy (capital, used for CGT) |
| Eviction and rent-arrears proceedings | Legal fees for selling |
| Costs of recovering unpaid rent | Fees for a lease extension or planning permission |
Worked example
Eviction costs of £1,200 are allowable in box 27. The £1,500 conveyancing bill when you bought isn't, but it reduces your gain when you sell.
| Your tax band | Saving 2026/27 | Saving 2027/28 |
|---|---|---|
| Basic rate | £240 | £288 |
| Higher rate | £480 | £528 |
| Additional rate | £540 | £588 |
Savings assume the whole amount is taxed at your top rate. Use the landlord tax calculator for your exact figure.
Where it goes on your tax return
On the UK property pages (SA105), enter it in box 27 (legal, management and other professional fees). Online, it's the matching question in the property section. Our SA105 helper sorts all your costs into the right boxes.
Repair or improvement: how HMRC decides
A repair restores something to its previous condition, even if modern materials make it a bit better. An improvement adds something new or makes it significantly better, and is capital. Timing also matters from 2027: a cost paid before 6 April 2027 saves tax at 20%/40%/45%, after that at 24%/44%/49%. See all landlord expenses A to Z.
Frequently asked questions
Are eviction costs tax deductible?
Yes. Legal costs of evicting a tenant or recovering rent are allowable.
Can I claim solicitor fees from buying the property?
Not against rent. They're added to the cost of the property for Capital Gains Tax.
Sources
- GOV.UK: Work out your rental income when you let property
- HMRC: UK property notes (SA105 Notes 2025)
- HMRC Property Income Manual: repairs, replacements and allowable costs
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.