Are letting agent fees tax deductible?
By the VoxaMTD team. Last verified 31 October 2026
Yes. GOV.UK lists letting agent fees and management fees among allowable expenses for landlords. They must be wholly and exclusively for the purposes of renting out the property.
You claim them against your rental income, either as an expense on your tax return or through your MTD records. If you use the property allowance instead of expenses, you cannot also deduct agent fees.
Other allowable expenses include insurance, repairs and maintenance, utility bills, Council Tax and accountants' fees. Capital costs, such as buying a property or building an extension, are not allowable.
If your agent collects rent and pays you net, record the gross rent and the fee separately so your totals match what HMRC sees. If you use a letting agent, ask for statements that show income and fees clearly.
Read next
Sources
- GOV.UK: Renting out a property: paying tax
- GOV.UK: Income Tax when you rent out a property: working out your rental income