VAT on residential letting
Residential rent is exempt from VAT.
2 min read · Updated 2 August 2026
Overview
Letting residential property is an exempt supply for VAT, so landlords do not charge VAT on rent and cannot generally recover VAT on costs. Agents' fees do carry VAT, which is an irrecoverable cost for most residential landlords but is an allowable expense for income tax.
Legal requirements
- Exempt supplies do not count towards the VAT registration threshold.
- Some serviced and holiday accommodation is standard-rated instead.
Practical guidance
- Record fees gross of VAT in your expense records.
This wiki entry is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.