Can I claim the property allowance and expenses?
By the VoxaMTD team. Last verified 31 October 2026
No. You can use the property allowance instead of deducting expenses, not as well as. If your expenses are more than your income, it may be better to claim expenses instead of the allowance.
The allowance is up to £1,000 a year per person and cannot create a loss. Claiming expenses can produce a loss, which you can carry forward against future profits from the same rental business.
If you claim the allowance on one business, you may not claim actual expenses for another business covered by the same allowance.
You cannot use the allowance at all if you claim the tax reducer for finance costs on a residential property. If you are already in Self Assessment, you deduct the allowance from your gross property income on your return. Compare both routes using your own figures before deciding.
Read next
- What is Property allowance? →
- Allowable Expenses for Landlords (2026) →
- Rental income tax calculator →
- Year-end Self Assessment →