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Landlord tax returns: capital vs revenue, and the errors HMRC looks for

The two mistakes HMRC flags most on landlord returns are capital-vs-revenue and replacement relief. This checker explains both.

Capital or revenue?

Built around HMRC's own Property Rental Toolkit, this tool tackles the errors that trigger enquiries. The biggest is treating a capital improvement as a repair (a new extension is capital, fixing the roof is revenue) and claiming it in full against your rent.

Replacement relief and what's allowable

A capital-vs-revenue classifier tells you which is which, a replacement-of-domestic-items calculator works out the like-for-like amount you can actually claim (the old 10% wear-and-tear allowance is long gone), and a reference list separates what's allowable from what isn't.

The errors HMRC looks for

It also lists the common errors HMRC looks for, from claiming the full mortgage interest instead of the Section 24 credit (20% up to 2026/27, 22% from 2027/28) to initial repairs on a run-down purchase, so you can sense-check your return before you file.

Try the tool

Landlord Tax Return Checker

A checklist for the property pages of a Self Assessment return, for learning what is usually checked. This tool is part of the Property Clues UK Landlord Toolkit: 43 educational property calculators and trackers, built for the 2027 tax changes. Pay once, use in your browser.

Free tool

Landlord Records Checklist

What HMRC commonly expects landlords to keep, from SA105 expenses to tenancy papers, and for how long. Free to use in your browser, no sign-up.

Educational guidance only. Not financial, tax or legal advice. Tax and property rules change; always verify current figures on GOV.UK and take professional advice before acting. © 2026 Property Clues.

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