The short version: Replacement of Domestic Items Relief lets landlords claim tax relief when they replace furniture, appliances, or other household items in a rental property. It replaced the old Wear and Tear Allowance.
What can you claim?
The cost of replacing items like sofas, beds, fridges, washing machines, curtains, and carpets. The item must be a replacement for something that was already there, not a new addition or an upgrade.
What about improvements?
If the new item is significantly better than the old one, you can only claim the cost of a like for like replacement. The extra cost of upgrading isn’t allowable.
What doesn’t qualify?
Items in properties covered by Rent a Room relief or furnished holiday lets. Initial furnishing of a property (that’s capital expenditure, not replacement). Anything the tenant provides themselves.
How do you claim?
Deduct the cost from your rental income on your Self Assessment tax return. Keep receipts as evidence.
Replacing items in your rental and want to make sure you’re claiming correctly? We can help with your rental accounts.
