Costs of Replacing Domestic Items for Residential Lettings

You can claim the cost of replacing domestic items in residential accommodation where:

  • The cost is incurred on purchasing a replacement domestic item.
  • The new item is provided solely for the use of the tenants in the accommodation and the old item is no longer available for use.

You cannot claim the initial cost for an item provided for use in the accommodation for the first time.

To be able to show that a new item is a replacement, all landlords should keep a full inventory of items in their rental properties (which is updated annually). Without this you leave yourself open to challenge by HMRC.

Lists should include items such as:

  • Moveable furniture – e.g. beds, free-standing wardrobes, tables, lamps
  • Furnishings – e.g. curtains, linens, carpets, floor coverings
  • Household appliances – e.g. televisions, fridges, freezers, electric showers
  • Kitchenware – e.g. crockery, cutlery, utensils

Not to be confused with repairs and maintenance which are still fully allowable costs. If an item cannot be repaired and has to be renewed, the above will apply.