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Landlords: are you claming the new Replacement of Domestic Items relief?

Landlords: are you claming the new Replacement of Domestic Items relief?
Wednesday, April 12, 2017

The 10% wear and tear allowance for furnished properties was abolished from April 2016 and replaced by the Replacement of Domestic Items relief - have you checked if you've told your accountant about the items that you've replaced during the last tax year?

What is the new relief?

Replacement of Domestic Items relief

Applies to landlords, e.g. companies, individuals and trusts who let residential property.

Tax relief is given against their rental income for:

  • The cost of the replacement item
  • Less the cost of any element of improvement (beyond the nearest modern equivalent)
  • Less any proceeds of sale of the old item
  • Plus any costs of disposing of the old item

Relief is given for 'domestic items' which includes:

  • Moveable furniture 
  • Furnishings such as carpets, curtains and linen
  • Household appliances such as fridges and freezers
  • Kitchenware such as crockery and cutlery
  • Televisions

Items must be provided solely for the use of the tenant within the residential property.

Relief is not available if rent a room relief is claimed.

If you need more information about what you can claim against your rental income, please don't hesitate to call the team on 01235 768561.

Moving to Panthera is easy

It’s a big decision to move accountants. We get it. That’s why we have a clearly defined process in place to make it as straightforward as possible.

Step 1: We have a short initial discovery meeting to understand your needs so we can create the perfect service package for your business

Step 2: You receive your tailored proposal with one simple monthly fee and you e-sign the letter of engagement

Step 3: You provide your current accountant with notice – and you leave the rest to us!

We liaise directly with your previous accountant regarding the transfer of information. We request authority from HMRC to act on your behalf. We handle as much of the admin as possible, so you can get on with running your business – safe in the knowledge that everything is going on in the background. And if there’s any action for you, we let you know.

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