Answers · UK 2025/26

What is replacement of domestic items relief for landlords?

Replacement of domestic items relief lets landlords deduct the cost of replacing furniture, furnishings, appliances and kitchenware in a rental property from their rental income, but only the cost of a like-for-like (or nearest modern equivalent) replacement -- the cost of the very first purchase of an item is not deductible, only later replacements.

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Replacement of domestic items relief is one of the more misunderstood landlord tax reliefs because it explicitly does NOT cover the first time you furnish a property, only genuine replacements afterwards. **What the relief covers** The relief allows landlords letting a residential property to deduct the cost of replacing movable furniture, furnishings, household appliances (such as fridges, washing machines, and cookers) and kitchenware, provided the old item is genuinely being disposed of and replaced, and the property continues to be let out (furnished or unfurnished) as a residential letting, not a furnished holiday letting, which has separate rules. **The like-for-like restriction** You can only claim the cost of a reasonably equivalent modern replacement, not an upgrade -- if you replace a basic washing machine with a similar mid-range model, the full replacement cost typically qualifies, but if you replace it with a significantly more expensive premium model, only the portion of the cost equivalent to a like-for-like replacement is deductible, and the extra cost of the upgrade is treated as capital expenditure (not deductible against rental income, though it may reduce Capital Gains Tax on an eventual sale). **No relief for the first purchase** Crucially, if you buy furniture or appliances for a rental property for the very first time (for example, furnishing a previously unfurnished flat before letting it for the first time), none of this initial cost qualifies for replacement of domestic items relief -- the relief only applies once you are replacing something that was already there and being disposed of. **Worked example** A landlord initially furnishes a rental flat with a £400 fridge-freezer when they first buy the property to let out -- this £400 is NOT deductible under the relief, since it is an initial purchase, not a replacement. Three years later, the fridge-freezer breaks and the landlord buys a similar mid-range replacement for £450, disposing of the old one -- this £450 replacement cost IS fully deductible against that year's rental income under replacement of domestic items relief, since it is a genuine like-for-like replacement. **Disposal proceeds must be deducted** If the landlord sells or trades in the old item for something (for example, a part-exchange value on a new appliance), the amount received must be deducted from the claim -- you can only claim the net cost of replacing the item, not the full price of the new item if you also received money for the old one. **Costs directly incidental to replacement** Costs directly related to disposing of the old item and acquiring the new one (such as delivery costs for the replacement, but not general costs unrelated to the specific replacement) can also usually be included in the claim. **Practical tip** Keep receipts clearly showing both the original purchase (to prove it is a genuine replacement, not an initial furnishing) and the new purchase, and note whether any element of the replacement is an upgrade beyond a like-for-like standard, since only the like-for-like portion is deductible -- a landlord accountant or the property income section of Self Assessment guidance can help apply this correctly.