Replacement of Domestic Items Relief is a tax deduction available to landlords to offset the cost of replacing certain items in a rental property. This relief allows you to deduct the cost of replacing furnishings, appliances, and kitchenware provided for the tenant's use, from your taxable rental income. It was introduced in April 2016, replacing the previous Wear and Tear Allowance.
Qualifying Items for the Relief
- Furnishings (e.g., sofas, beds, dining tables)
- Household appliances (e.g., fridges, washing machines, dishwashers)
- Kitchenware (e.g., crockery, cutlery)
- Televisions and similar electronic items for tenant use
Key Conditions
- The relief applies only to the replacement of items, not the initial purchase.
- The replaced item must be for the tenant's use within the rental property.
- The amount you can claim is limited to the cost of a like-for-like replacement, or the nearest modern equivalent. Any additional cost for improvement cannot be claimed.
- You must also deduct any proceeds from disposing of the old item from the cost of the replacement.
Restrictions
- Landlords cannot claim this relief if they're already claiming Rent a Room Relief for the property.
- The property must not be a furnished holiday letting, as different tax rules apply to these types of properties.
How to Claim:Landlords can claim Replacement of Domestic Items Relief when calculating their taxable profit from their property rental business on their Self Assessment tax return. It's important to keep receipts and records of both the purchase and disposal of the items to support your claim. This relief is one way landlords can manage the costs associated with maintaining the quality and standards of their rental properties.
