The replacement of domestic items relief enables landlords to claim tax relief when they replace movable furniture, furnishings, household appliances and kitchenware in a rental property. The allowance is available based on the cost of domestic items such as free-standing wardrobes, curtains, carpets, televisions, fridges and crockery.<\/p>\n
In order for relief to be given, four conditions must be met:<\/p>\n
Condition A – the individual or company looking to claim the relief must carry on a property business that includes the letting of a dwelling-house(s).<\/p>\n
Condition B – an old domestic item that has been provided for use in the dwelling-house is replaced with the purchase of a new domestic item. The new item must be provided for the exclusive use of the lessee in that dwelling-house and the old item must no longer be available for use by the lessee.<\/p>\n
Condition C – The expenditure on the new item must not be prohibited by the wholly and exclusive rule but would otherwise be prohibited by the capital expenditure rule.<\/p>\n
Condition D – Capital Allowances must not have been claimed in respect of the expenditure on the new domestic item.<\/p>\n
If the 4 conditions are met, then a deduction for the expenditure on the new item can be claimed.<\/p>\n
The amount of the deduction is based on:<\/p>\n
HMRC’s internal guidance provides an example highlighting that a brand new budget washing machine costing circa £200 is not an improvement if a replacement for a five year old washing machine that cost around £200 at the time of purchase (or slightly less, taking into account inflation).<\/p>\n
The replacement of domestic items relief enables<\/p>\n","protected":false},"author":1,"featured_media":10183,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[134],"tags":[],"acf":[],"yoast_head":"\n