Is a New Bathroom Tax Deductible for Landlords?
Same-footprint replacement is a repair; an en-suite or second bathroom is capital. Invoice splitting and a worked example.
The short answer
Like-for-like, yes; bigger or better, no. Replacing a worn bathroom suite, tiles and flooring with a modern equivalent on the same footprint is a repair — deductible in full. Adding a second bathroom, an en-suite, or moving walls is an improvement — capital.
Bathrooms follow exactly the kitchen logic — and the same three-way invoice split. The building parts (suite, tiles, pipework) are repair-or-capital; free-standing items (a cabinet, a mirror) are domestic items.
Repair or improvement
| Scenario | Likely treatment |
|---|---|
| Worn suite, tiles, flooring replaced on the same footprint | Repair — deduct in full |
| Bath replaced by a shower enclosure (modern equivalent, same room) | Repair in most cases |
| En-suite added, second bathroom created, room enlarged | Capital improvement |
| Electric shower added where there was none | Capital |
| Extractor fan or heated towel rail replaced | Repair |
| Full bathroom as part of a strip-out refurb before first letting | Capital |
Worked example
A £4,600 bathroom refit: £3,900 like-for-like suite, tiles and flooring; £700 for a new electric shower where there was none. Deductible: £3,900. Capital: £700.
| Deducting £3,900 in 2026/27 | Effect |
|---|---|
| Basic-rate landlord (20%) | £780 less tax |
| Higher-rate landlord (40%) | £1,560 less tax |
| Additional-rate (45%) | £1,755 less tax |
| From April 2027 (property rates 22/42/47%) | slightly more — the deduction is worth more as rates rise |
Ask for an itemised quote
As with kitchens, one line reading “new bathroom” hands HMRC the argument that the whole job is capital. Ask the fitter to list replacement work separately from additions.
What to keep
The invoice describing the work, proof of payment, and — for anything near the repair/improvement line — a sentence in your records saying what was there before. HMRC enquiries into landlord expenses turn on that single fact. Digital copies satisfy MTD’s record-keeping rules.
Where it goes under Making Tax Digital
If you are inside MTD for Income Tax (mandated from April 2026 above £50,000 gross), the cost belongs in your quarterly update under the matching expense category, in the quarter you paid it (cash basis is the default for landlords). Get the category right now — the final declaration only tidies totals, it does not re-classify. Check whether MTD applies to you.
HMRC Property Income Manual PIM2020 (repairs and renewals — like-for-like modern equivalent is a repair) · gov.uk “Work out your rental income when you let property” · rates from our verified 2026/27 dataset. Checked 31 Aug 2026.
Quick answers
Like-for-like replacement of a worn suite, tiles and flooring is a repair; adding a bathroom, an en-suite or enlarging the room is a capital improvement.
Usually yes — HMRC accepts modern equivalents, and a shower in place of a bath in the same room is generally treated as a repair rather than an improvement.
Creating a bathroom where there was none is capital. The cost is added to your base cost for Capital Gains Tax.
Box 25 — repairs and maintenance — for the repair element.