Replacement of domestic items relief for landlords

Why it matters

This relief covers a large share of ordinary landlord spending in furnished and part furnished lets, and it is regularly missed or claimed incorrectly.

Legal requirements

• The relief applies to replacements, not to items provided for the first time.
• The old item must no longer be available for use in the property.
• Improvement above a like for like replacement is not deductible.
• Any proceeds of sale or part exchange reduce the allowable amount.

Common mistakes

• Claiming the cost of furnishing a newly purchased rental property.
• Claiming a premium replacement in full when a standard equivalent was cheaper.
• Forgetting to deduct the scrap or resale value of the old item.
• Confusing fixtures such as a fitted kitchen, which are treated as repairs, with movable items.

Practical guidance

• Keep invoices showing the item, the date and the property.
• Note what was replaced and how the old item was disposed of.
• Where you upgrade, record the price of the equivalent standard item as well.
• Keep fixture repairs separate, because they are deducted as repairs rather than under this relief.

Fixtures compared with domestic items

A fitted kitchen, a boiler or a bathroom suite is part of the building. Replacing them on a like for like basis is normally a deductible repair rather than an item under this relief, while genuine improvements are capital. Free standing cookers, washing machines, beds, sofas, carpets, curtains and crockery are domestic items. Getting the category right matters because the treatment and the evidence differ.

Handling upgrades sensibly

If a basic washing machine is replaced with a mid range one because the basic model is no longer sold, that is usually a like for like modern equivalent and fully allowable. If you deliberately upgrade to a premium appliance, deduct the cost of a reasonable equivalent and treat the excess as non deductible. Keeping a screenshot of a comparable standard model at the time of purchase is enough to support the figure later.