{"id":4410,"date":"2023-03-01T10:07:01","date_gmt":"2023-03-01T10:07:01","guid":{"rendered":"https:\/\/cloud9accountingteam.co.uk\/?p=4410"},"modified":"2023-03-01T10:07:01","modified_gmt":"2023-03-01T10:07:01","slug":"relief-for-replacement-domestic-items","status":"publish","type":"post","link":"https:\/\/cloud9accountingteam.co.uk\/sk\/relief-for-replacement-domestic-items\/","title":{"rendered":"Relief for Replacement Domestic Items"},"content":{"rendered":"

Property PM article 1<\/strong><\/p>\n

If you let a furnished property, it is very likely that you will need to replace domestic items from time to time. A specific relief provides tax relief for the cost of replacing certain domestic items. The relief does not extend to the initial purchase of the items.<\/p>\n

The relief is available to both unincorporated landlords and corporate landlords. However, it does not apply where the property is a furnished holiday letting or where rent-a-room receipts have been received.<\/p>\n

Domestic items are items for domestic use such as movable furniture, furnishings, household appliances and kitchenware.<\/p>\n

Conditions for relief<\/strong><\/p>\n

Availability of the relief is contingent on the following four conditions being met:<\/p>\n

    \n
  1. The individual or company must carry on a property business that includes the letting of one or more dwelling house(s).<\/li>\n
  2. An old domestic item has been provided for use in the property and it is replaced with a new domestic item. The new item must be available for the exclusive use of the lessee, and the old item must no longer be available for their use.<\/li>\n
  3. The new item must be used wholly and exclusively for the purposes of the business (such that a deduction for the cost of that item in computing taxable profits of the rental business would not be prohibited under the \u2018wholly and exclusively rule\u2019) but a deduction would be denied on the basis that the expenditure is capital expenditure.<\/li>\n
  4. Capital allowances have not been claimed in respect of the expenditure on the new item.<\/li>\n<\/ol>\n

    Amount of the relief<\/strong><\/p>\n

    Tax relief is given as a deduction in calculating taxable profits for the cost of the new item on a \u2018like-for-like\u2019 basis. If the new item is superior to the old item, there is no relief for the cost of the improvement element. In this case, the deduction is equal to the lower of:<\/p>\n