What Allowances can you Claim on Replacement of Domestic Items?

As a Landlord, it’s always important to ensure that you know what you can be claiming for.

The government allows landlords to claim tax relief on money spent to replace 'domestic items' in their rental properties. This came into effect from 5 April 2016 and the replaces the previous wear and tear allowance basis, which was used to cover such items.

The government lists a number of examples of which domestic items qualify for this new relief. These include:-

  • Replacement beds
  • Replacement carpets
  • Replacement crockery or cutlery
  • Replacement curtains
  • Replacement fridges, washing machines etc
  • Replacement sofas

FurnatureHowever, you can only claim for a like-for-like replacement. For example, if you bought a new fridge worth £600, but the cost of replacing your old fridge with a very similar one would only have been £400, you would only be able to claim £400 relief. You can also claim for the cost of disposing items (usually electrical goods).

As a common situation, were you to replace a number of items in your property, ready for some new tenants, these could possibly include curtains for £200, a washing machine for £250 (which also costs £50 to dispose of) and a new bed for £400. The relief you would be able to claim is £200 + £250 + £50 + £400, totalling £900. In order to obtain the relief, you will need to deduct this figure from the net rental profit on which you would normally pay tax.