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Replacement of furnishings and equipment

UK property letting: what replacement can you claim on your UK tax return? Read our simple guide to find out


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Replacement of Domestic Items Relief

This relief provides a deduction for the cost of replacing items of furniture or equipment when computing the taxable profit, subject to several conditions:

  • ‍The person claiming the deduction must have a property business that includes a dwelling house
  • The item being replaced must be available for the exclusive use of the tenant
  • The replacement is on a “like for like” basis with no element of improvement.

The “like for like” restriction means that where a replacement item includes an element of improvement then only part of the cost is allowable. The part that is allowable is what the cost would have been on a like for like basis (i.e.: with no improvement element).

As with the previous allowance, there is no allowance for the initial furnishing and equipment in a property.

These rules do not apply to a furnished holiday letting where capital allowances are available.

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The information contained in this article is believed to be correct at the time of publication. The content of this article is intended to be a brief summary of the principal points of the legislation or proposed legislation only, and it is provided for general guidance only. It may not take into account subsequent changes in the law and of necessity it omits much detail. Taxation is a complicated subject and is subject to change. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article. If the subject matter is of interest you should contact us to see if there is a relevant update, and to take professional advice which takes into account your circumstances.

UK property letting: what replacement can you claim on your UK tax return? Read our simple guide to find out

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