Relief for cost of replacing domestic items - USERNAME: niki - 04/09/2018

Tax Return 2017/2018

Can one claim a full cost of replacing the following items in Box 36 of UK Property Pages on a residential let (cost of replacing domestic items):

1. leaking water tank - plumber advised replacement. Replaced for a modern like for like equivalent

2. old water tank replacement - no faults but over 25 yrs old so replaced for fear of breaking down soon. Replaced with a like for like modern equivalent "

Many thanks

Answer:

In order to claim this relief, various conditions must be met including:

the expenditure must relate to the replacement of a domestic item for use solely by the lessee in the let property;

the old item must no longer be available;

the expenditure is capital in nature and incurred wholly and exclusively for the purposes of the property business;

capital allowances are not available in respect of the expenditure; and

rent-a-room relief has not been claimed.

In addition the replacement item must be substantially the same as the old item. Where the replacement is superior to the old item, the deduction is limited to the cost of an equivalent replacement.

From the above it would appear that the items you state would qualify for relief.