Replacement of Domestic Items Relief

The replacement of domestic items relief is a tax relief that you can use to claim costs related to replacing things like furniture, household appliances, kitchenware, etc., if you’re a landlord and earn rental income. Think of it like a way to claim expenses as a landlord for buying things for the property. It was introduced as a replacement to the Wear and Tear Allowance in 2016 (this allowance used to let you claim 10% off your rent as a fixed “maintenance” cost).

What qualifies as a “domestic item”:

  • The item must be used only by your tenant
  • The item must be a replacement of the original one – it can’t be new or a significant improvement upon the original item. For example, you can’t replace a £50 table with a £300 table and claim the whole cost.

It’s important to be aware that you can’t claim the replacement of domestic items relief if you are also claiming the Rent a Room relief or if the property is a furnished holiday letting such as an AirBnB. The Rent a Room scheme allows you to earn up to £7,500 a year tax-free by renting out a part of your home, as long as you also live there. If what you earn from renting out the room is less than £7,500, you don’t even need to declare it to HMRC. It’s completely exempt from tax and does not count towards your Personal Allowance.

If you make more than £7,500, you still have to file a Self Assessment tax return, but you can claim £7,500 as a flat tax-free allowance.

Frequently Asked Questions

Search More Terms

View our latest news & insights

14 February 2024
Navigating the landscape of business taxes in the UK can seem daunting, especially given the range of taxes that might a...
Navigating the landscape of business taxes in the UK can seem daunting, especially given the range of taxes that might apply to your organization. However, understanding which taxes are relevant to your business is crucial for com...
17 January 2024
Your business has costs to deal with and pay as part of their day-to-day trade and as part of ad hoc strategies. They ty...
Your business has costs to deal with and pay as part of their day-to-day trade and as part of ad hoc strategies. They typically range from phone line bills, postage and stationery to computer software and travel costs. Being the o...