What relief can I get for property expenses?  What is Replacement of Domestic Items relief?  What can I claim Replacement of Domestic Items relief on? 

Subscribers see Replacement of Domestic Items relief for detailed notes on this topic.

This is a freeview 'At a glance' guide to Replacement of Domestic Items relief.

At a glance

Replacement of Domestic Items relief replaced the 10% Wear and Tear allowance for furnished properties from April 2016.

Replacement of Domestic Items relief

Applies to landlords, e.g. companies, individuals and trusts who let residential property.

Tax relief is given against their rental income for:

  • The cost of the replacement item.
  • Less the cost of any element of improvement (beyond the nearest modern equivalent).
  • Less any proceeds of sale of the old item.
  • Plus any costs of disposing of the old item.

Relief is given for 'domestic items' which includes:

  • Moveable furniture. 
  • Furnishings such as carpets, curtains and linen.
  • Household appliances such as fridges and freezers.
  • Kitchenware such as crockery and cutlery.
  • Televisions.

Items must be provided solely for the use of the tenant within the residential property.

This relief is not available if Rent a Room relief is claimed.

Useful guides on this topic

Replacement of Domestic Items Relief (subscriber guide)
What is Replacement of Domestic Items Relief? When can it apply and what conditions must be met? 

Adviser's Guide: Property Business: Profits and losses
What is property income? How is it taxed? How are profits calculated? How are losses relieved? Is NI paid on property income? Is property income classed as a business activity?

Property profits & losses: Toolkit (2023-24)
Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual. 

Squirrel ad

Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter