What is Replacement of Domestic Items Relief?

Full Definition

Replacement of Domestic Items Relief allows landlords of residential let property to deduct the cost of replacing movable domestic items provided for tenants' use - such as sofas, beds, curtains, carpets, white goods, crockery and cutlery. The relief covers replacing an existing item with a new equivalent; the first-time purchase of an item for a property is not deductible. If the replacement is an upgrade, only the cost of a like-for-like equivalent qualifies, and any proceeds from selling the old item reduce the claim. The item must be wholly for the tenants' use and the old one no longer available to them. This relief replaced the former wear-and-tear allowance and applies to most residential lets, though not to furnished holiday lettings or rent-a-room arrangements. It matters because it lets landlords reduce taxable rental profit for genuine furnishing costs, helping align the tax bill with actual outgoings on maintaining a let property.

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