What is the replacement of domestic items relief?
Definition of the replacement of domestic items relief
‘Replacement of domestic items’ relief is a type of tax relief. Under certain circumstances, it allows individuals who earn income from letting residential property to claim a tax deduction for the cost of replacing domestic items within the property.
These items include:
- movable furniture (e.g. beds and free-standing wardrobes)
- furnishings (e.g. curtains, linens, carpets)
- household appliances (e.g. televisions, fridges, freezers)
- kitchenware (e.g. crockery, cutlery)
The replacement of domestic items relief is available for qualifying residential properties that are either:
- partly furnished
- fully furnished
For more information, take a look at HMRC’s guidance on the replacement of domestic items relief.
Managing tax as an unincorporated landlord
If you’re an unincorporated landlord and you’re wondering how to manage your tax obligations, then FreeAgent can help.
We’re building a brand new version of our award-winning accounting software that’s designed specifically for unincorporated landlords. FreeAgent for Landlords will help unincorporated landlords manage their property finances and submit Self Assessment to HMRC from January 2024.
You can find out more about FreeAgent for Landlords and register your interest to be the first to know when it’s ready. Alternatively, you can speak to your accountant about gaining early access to the software.