Landlords and carpets
Do landlords get tax relief when replacing a carpet?
This is at face value a simple question but often causes tax advisors difficulty, mostly because the rules keep changing!
Since the Wear and Tear allowance was abolished in April 2016, a new concept exists which is the ‘replacement of domestic items relief’. Essentially this enables landlords to obtain tax relief when replacing an item of existing furniture, as long as the replacement item is not an improvement and so significantly more expensive than the original. HMRC confirm qualifying domestic items to include curtains, linens, carpets and floor coverings, as well as more obvious things such as beds and fridges.
Tax relief is available to landlords of furnished, partially furnished or unfurnished dwelling houses. This rule does not therefore apply to commercial properties, or furnished holiday lets, owners of which may instead claim capital allowances.