Replacement of Domestic Items Relief: What Landlords Can Claim

What Is Replacement of Domestic Items Relief?

Since April 2016, landlords can claim tax relief when they replace furniture, furnishings, appliances, and other domestic items in a residential let property. This replaced the old Wear and Tear Allowance (which gave a flat 10% deduction of rental income for furnished properties).

What You Can Claim

You can claim the cost of replacing:

• Furniture — beds, sofas, tables, chairs, wardrobes, desks
• Soft furnishings — curtains, blinds, carpets, rugs, bedding
• Appliances — fridges, freezers, washing machines, dishwashers, ovens, microwaves
• Kitchenware — crockery, cutlery, pans (if provided as part of the let)

Key Rules

Replacements Only

You can only claim for replacing an existing item. The initial purchase of furniture when you first furnish a property is NOT claimable. The relief is for replacements of items already in the property.

Like for Like

The relief covers the cost of a similar item or the nearest modern equivalent. If you upgrade (for example, replacing a basic oven with a high-end range cooker), you can only claim the cost of a similar basic oven.

Deduct Proceeds

If you sell or receive money for the old item, deduct the proceeds from your claim.

Applies to All Let Residential Property

The relief is available for all residential let properties, whether furnished or part-furnished. The old Wear and Tear Allowance only applied to furnished properties.

Example

You replace a washing machine in your rental property:

• New washing machine: £350
• Sale of old machine on Facebook Marketplace: £30
• Claimable amount: £320

Record Keeping

Keep receipts for all replacement items and note what they replaced. If HMRC enquires, you need to show that the item was a genuine replacement and that the cost claimed is for a like-for-like replacement.

Use Accounted to track replacement purchases alongside your other property expenses.

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Every replacement item is a tax deduction. Sign up for Accounted and let Penny track your property furnishing costs.