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 that the company can claim a 100% ‘replacement of domestic items relief’ (see there for the conditions). It is explained there that this relief is also available to companies that rent out properties.