The short answer
Tenant referencing, Right to Rent checks, deposit scheme fees and advertising for tenants are allowable letting costs.
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 |
|---|---|
| Credit and reference checks | Fees you pass on and recover from the tenant (where still allowed) |
| Deposit protection scheme fees | |
| Online listing and advertising costs |
Worked example
Referencing (£60), deposit protection (£30) and a listing fee (£30) total £120. Claim it in box 29, or box 27 if your agent charged it.
| Your tax band | Saving 2026/27 | Saving 2027/28 |
|---|---|---|
| Basic rate | £24 | £29 |
| Higher rate | £48 | £53 |
| Additional rate | £54 | £59 |
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 29 (other allowable property expenses). 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 tenant referencing fees tax deductible?
Yes. They're part of the cost of letting.
Can I claim landlord registration or licence fees?
Yes. Landlord registration, licensing and selective licensing fees are allowable.
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.