Enter Your E-mail

Under the 'Replacem

ent Furniture' Relief landlords of all residential lets (except furnished holiday lets) whether partly furnished or unfurnished, are able to claim a deduction for the capital costs of replacing such items as furniture, furnishings, appliances and kitchenware provided by the landlord for use by the tenant.

No deduction is permitted for the initial cost of the furnishings, or to the extent that any replacement expenditure is actually an enhancement.

A replacement will be regarded as an improvement or enhancement if the item can do more than the item that it replaced.

Example:
John as landlord spends £600 replacing the existing washing machine with a washer dryer, and the cost of an equivalent washing machine to the one replaced is £400.

The permitted deduction would be £400 (the cost of a like-for-like replacement) rather than £600. The additional £200 spent on the washer dryer is regarded as improvement expenditure and is not allowable.

This is a sample tip taken from our 165 page guide:

101 Tax Tips For Landlords 2016/17