The short answer
Letting and management fees are fully allowable. Claim them in box 27 and report the rent before the agent's fees in box 20.
It's a revenue cost of running the letting, so it reduces your taxable rental profit at your top rate of tax.
What you can and can't claim
| You can claim | You can't claim |
|---|---|
| Monthly management fees | Fees for buying or selling the property (they're capital, used for CGT) |
| Tenant-find fees and renewal fees | |
| Inventory and check-out fees charged by the agent |
Worked example
Rent is £1,200 a month and the agent takes 10%, so £14,400 goes in box 20 and £1,440 in box 27.
| Your tax band | Saving 2026/27 | Saving 2027/28 |
|---|---|---|
| Basic rate | £288 | £346 |
| Higher rate | £576 | £634 |
| Additional rate | £648 | £706 |
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
Do I report rent before or after the agent's fee?
Before. Put the full rent in box 20 and the fees in box 27.
Are tenant-find fees allowable?
Yes. Fees for finding tenants and renewing tenancies are allowable letting costs.
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.