In terms of a residential property that is buy-to-let, the following expenses are deductible:

• Rental agent’s commission or fees for securing a tenant.
• Advertising costs of marketing the property.
• Levies, municipal rates, insurance fees, water and electricity.
• Interest paid on the home loan, if applicable.
• Cleaning costs, garden services and security.
• Repairs and maintenance costs (excluding improvements to the property, as this would be deducted from capital gains tax).

“As a landlord, deducting the non-capital expenses from your tax return will reduce your taxable income. However, before embarking on your landlord journey, it is advisable to chat to a professional real estate company, your accountant, a financial advisor or a tax specialist, so that you fully understand both the financial implications and tax benefits,” says Hutchison.

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