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HMRC internal manual

Employment Income Manual

Removal or transfer costs: expenses and benefits to which Section 271 ITEPA applies: domestic goods for new residence

Section 285 ITEPA 2003

Exemption under this heading is available where:

  • the employee, or
  • the employee and one or more members of his or her family or household (see EIM20504), or
  • one or more members of the employee’s family or household

disposes of an interest in the old home and acquires an interest in the new home.

The exemption applies where domestic goods intended to replace items used at the old home that are not suitable for use in the new home are purchased or provided by the employer or where the employer reimburses the employee’s cost of purchasing such items. Examples would be carpets and curtains that were the wrong size for the new home, or an electric cooker bought to replace a gas cooker where there is no gas supply in the new home.

There is no need to take account of any improvement in quality between the old goods and the new, nor is it necessary to deduct the sale proceeds from the exempt amount where the replaced goods are sold.