Share this content

Replacement of Domestic Items Relief

Is this relief specific to each property in a rental business?

Didn't find your answer?

I may be over complicating this rule, however if a client has a rental business (say 3 properties) and they have just purchased a 4th. This new property has no wardrobes, kitchen worktops, bedroom furniture etc. Usually under the rules my understanding was that for the first time they purchase these items they cannot claim relief on it, only on replacement should it be a "like for like" item/price.

However, as they already have a rental business would they be allowed to claim the Replacment of Domestic Items relief? Or is this relief specific for each individual property rather than the business as a whole?

Many thanks in advance!

Replies (6)

Please login or register to join the discussion.

avatar
By Anonymous.
20th Oct 2020 11:47

Please note that posting as an anonymous user is reserved for sensitive content that you need help with but don't want people to know who you are.

Thanks (0)
By Duggimon
20th Oct 2020 11:48

The replacement of domestic items relief only applies to items which are replacements for domestic items. Buying new ones for a house that doesn't have any is not replacing anything.

Thanks (1)
Replying to Duggimon:
avatar
By Tax Dragon
20th Oct 2020 11:54

Logic!

Thanks (0)
avatar
By Laurence52
20th Oct 2020 11:50

If you look at HMRC's Property Income manual PIM3210 you'll see that it doesn't meet condition B.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim3210

Thanks (1)
Replying to Laurence52:
avatar
By Tax Dragon
20th Oct 2020 11:54

Rules!

Thanks (0)
avatar
By Tax Dragon
20th Oct 2020 11:55

Over complicating?

Thanks (1)
Share this content