Mileage allowance
Mileage allowance for landlords is a tax deduction available under HMRC's Approved Mileage Allowance Payments (AMAP) scheme for journeys made wholly and exclusively for the purpose of the rental business. Landlords with an unincorporated property business can claim the AMAP rate as an allowable expense in their self-assessment return instead of claiming actual vehicle running costs. The claim reduces taxable rental profit and therefore the income tax due on rental income.
Current HMRC mileage rates for landlords
HMRC sets the Approved Mileage Allowance Payment rates for each tax year. For the 2026/27 tax year, the rates are:
Vehicle | First 10,000 business miles | Above 10,000 business miles |
|---|---|---|
Car or van | 55p per mile | 25p per mile |
Motorcycle | 24p per mile | 24p per mile |
Bicycle | 20p per mile | 20p per mile |
The car and van rate increased from 45p to 55p per mile from the 2026/27 tax year, the first change since 2011. Landlords planning mileage claims should use 55p for journeys made from 6 April 2026 onwards. Use the mileage calculator to estimate your allowable claim based on current HMRC rates.
What journeys qualify
A journey qualifies for mileage allowance if its sole purpose is the rental business. Qualifying journeys include: travelling to a rental property for a property inspection, a viewing, a check-in or check-out, a maintenance visit or to meet a contractor, a licensing appointment with the local authority, or a meeting with a letting agent or accountant relating to the rental business.
Journeys between the landlord's home and a rental property qualify where the home is also the base of the rental business. Journeys between properties also qualify.
The duality of purpose rule
A journey does not qualify where its purpose is mixed, partly business, partly personal. HMRC calls this duality of purpose and will disallow the claim in full where both purposes are present. A landlord who visits a rental property in Leeds and also sees friends in the same trip cannot claim the mileage for the entire journey. Journeys must be attributable exclusively to the rental business.
From working with self-managing landlords on expense categorisation, the duality of purpose rule catches landlords who combine a property visit with a personal errand on the same journey. The safest approach is to make separate trips where possible, and where that is not practical, to claim nothing for the combined journey.
The agent-managed exception
Where a letting agent manages the property and carries out inspections and maintenance coordination on the landlord's behalf, HMRC may argue that the rental activity is conducted through the agent, not the landlord. In that case, HMRC may disallow mileage claims by the landlord on the basis that the necessary business travel is undertaken by the agent rather than by them. Landlords whose agents carry out all property visits should take advice before claiming mileage.
Record-keeping requirements
HMRC requires contemporaneous records of all mileage claimed. A mileage log should record the date, start and end postcodes or addresses, the purpose of the journey, and the miles travelled. From April 2026, landlords within scope of Making Tax Digital must maintain these records digitally as part of their quarterly submission process.
Frequently asked questions
Can a landlord claim mileage on their self-assessment return?
Yes, provided the journeys are wholly for the rental business and the landlord uses their own vehicle. Claim under the AMAP rates (55p per mile for the first 10,000 miles from 2026/27 for cars) as an allowable expense against rental income on the property pages of the self-assessment return.
Can mileage and fuel receipts both be claimed for the same journey?
No. If you claim the AMAP mileage rate, that covers all vehicle running costs including fuel, insurance, and wear and tear. You cannot claim fuel receipts in addition to the mileage rate for the same journey.
What if the landlord drives more than 10,000 business miles?
The first 10,000 miles are claimed at 55p per mile (2026/27). Miles above 10,000 in the same tax year are claimed at 25p per mile. The threshold resets each tax year.
