Answers · UK 2025/26

What is the replacement of domestic items relief for furnished rental properties?

Replacement of domestic items relief allows buy-to-let landlords to deduct the cost of replacing domestic items -- such as sofas, beds, white goods, and curtains -- in furnished rental properties. You can deduct the cost of the replacement item (not the original purchase), capped at an equivalent replacement at the same quality.

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Replacement of domestic items relief (RDIR) was introduced from April 2016 to replace the old 10% Wear and Tear Allowance. It allows residential landlords to claim tax relief on the cost of replacing furnishings, appliances, and household goods in a let property -- but only on the replacement, not the initial purchase. **What qualifies?** Domestic items used solely by tenants in the let property: - Furniture (sofas, beds, wardrobes, tables, chairs) - Appliances (washing machines, fridges, ovens, dishwashers) - Televisions - Curtains, carpets, and floor coverings - Crockery and cutlery - Beds and bedding **Key conditions** 1. The old item must be removed from the property (either disposed of or given to the tenant) 2. The replacement must be for the same or broadly equivalent item -- you cannot claim the full cost of an upgrade 3. The original item must have been provided for the tenant's use **Upgrade rule -- limiting the deduction** If you replace a basic washing machine (£350) with a premium model (£700), you can only deduct the cost of an equivalent basic replacement. If the old model's replacement cost is £380, you deduct £380, not £700. The extra £320 for the upgrade is a capital improvement and not deductible as RDIR (it may be added to the property's CGT base cost instead). **Proceeds from disposal** If you sell the old item (e.g., the old washing machine for £50), you deduct £50 from the allowable replacement cost. **Worked Example** - Old sofa disposed of (no proceeds) - Replacement sofa cost: £600 (like-for-like quality) - Allowable RDIR deduction: **£600** **Another example with disposal proceeds** - Old fridge sold for £100 - New equivalent fridge: £450 - Allowable deduction: £450 - £100 = **£350** **What is NOT covered by RDIR?** - Fixtures that are integral to the building: fitted kitchens, fitted bathrooms, boilers, radiators -- these are typically capital expenditure or may qualify under capital allowances for commercial properties - Initial purchase of furnishings when first letting a property **Unfurnished properties** RDIR applies only where domestic items were previously provided. A completely unfurnished property with no prior furnishings cannot use RDIR for initial purchases. For landlords, RDIR claims are entered in the 'allowable expenses' section of the property income pages in Self Assessment.