Tax Advice: Landlord’s replacement of domestic items

If you let out residential property (a dwelling house) the government now allows landlords to claim tax relief on money spent to replace ‘domestic items’ in their rental properties, such as:

– movable furniture for example beds, free-standing wardrobes
– furnishings for example curtains, linens, carpets, floor coverings
– household appliances for example televisions, fridges, freezers
– kitchenware for example crockery, cutlery

But this only applies to items being replaced – not those bought for a property for the first time. And replacement of domestic items relief is only available for expenses incurred from 6 April 2016 for Income Tax purposes.

You can also only claim the amount for a like-for-like replacement. So, the amount of the allowable deduction for the new item is:

– the cost of the new replacement item, limited to the cost of an equivalent item if it represents an improvement on the old item (beyond the reasonable modern equivalent) plus:
– the incidental costs of disposing of the old item or acquiring the replacement less
– any amounts received on disposal of the old item

For more information on this topic or to discuss how we can help you effectively structure your finances for tax and save you money, contact your usual Beavis Morgan Partner.

Further reading:
Taking a lodger? Don’t forget to claim “rent a room” relief