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:

  • unfurnished
  • partly furnished
  • fully furnished

The relief is not available for furnished holiday lets or for property owners who use the Rent a Room Scheme.

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. Available from early 2023, FreeAgent for Landlords will help unincorporated landlords prepare for the introduction of Making Tax Digital (MTD) for Income Tax

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.

Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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