Sarah Bradford explains the mechanism by which landlords letting furnished residential property can secure relief for the cost of domestic items.
Landlords letting residential property cannot claim capital allowances for the fixtures and fittings that they provide. Since 6 April 2025, this applies equally to landlords letting furnished holiday accommodation; prior to this date, capital allowances were available under the former regime for furnished holiday lettings. However, it is not available where a landlord lets one or more furnished rooms in their own home and claims rent-a-room relief.
The lack of capital allowances does not mean that landlords are not entitled to any tax relief for the cost of domestic items provided to tenants. While they are not able to deduct the cost of the original item, a dedicated relief is available for the cost of replacement domestic items. The relief applies equally to individual and corporate
