A company rents out a residential property. The company now has to replace worn-out or old carpets, white goods and furniture. Can the company claim any capital allowance (or equivalent) for this expenditure? 

Arthur Weller replies:  

If you look at HMRC’s Property Income manual at PIM3210 (www.gov.uk/hmrc-internal-manuals/property-income-manual/pim3210) you can see it indicates that the company can claim a 100% “Replacement of domestic items relief” subject to certain conditions. It is explained that this relief is also available to companies that rent out properties.