Replacement of Domestic Items Relief: Landlord Guide 2026
How UK landlords claim replacement of domestic items relief in 2026/27 - what qualifies, the like-for-like rule, and how it cuts your rental tax bill.
Quick answer
Replacement of domestic items relief is a deduction that lets residential landlords claim the cost of replacing furnishings and appliances - sofas, beds, carpets, white goods, crockery - against rental profits. You claim only the cost of replacing an existing item with a like-for-like equivalent, minus anything you got for the old one. The relief reduces the Income Tax you pay on rental income.
What the relief is, and why it matters
When you let a residential property and provide items for the tenant's domestic use, those items wear out. A washing machine breaks, a sofa sags, a carpet gets threadbare. Replacement of domestic items relief gives you a way to claim the cost of replacing them against your rental income.
This relief replaced the older "wear and tear allowance", which used to give a flat 10% deduction for fully furnished lets regardless of actual spending. That flat allowance is gone. Today, you claim what you actually spend on replacements, and only when you spend it.
The deduction comes off your rental profit. Because rental profit is taxed at your marginal Income Tax rate, the cash value of the relief depends on which band you are in: 20% in the basic rate, 40% in the higher rate, and 45% in the additional rate (rates for England, Wales and Northern Ireland; Scottish taxpayers use the Scottish bands). To see how a deduction flows through to your overall position, try the
Income Tax Calculator
Work out how much income tax you owe using the latest 2025/26 UK tax bands.
Open Income Tax calculatorWhat qualifies as a domestic item
A domestic item is something provided mainly for the tenant's domestic use. The relief is for the property as a dwelling, not for items you use to run a business.
Typical qualifying items include:
| Category | Examples |
|---|---|
| Furniture | Beds, sofas, wardrobes, tables, chairs |
| Furnishings | Carpets, curtains, rugs, blinds, linen |
| Appliances | Fridges, freezers, washing machines, dishwashers, cookers |
| Kitchenware | Crockery, cutlery, pots and pans |
What does not qualify is anything that has become part of the building itself. A fitted kitchen, a bath, a boiler, a fixed wash basin - these are fixtures. When you replace a fixture you are usually carrying out a repair, and the cost is claimed as a normal repairs-and-maintenance expense rather than under replacement of domestic items relief. The distinction matters for how you record the expense, even though both routes ultimately reduce your taxable profit.
The replacement-only rule
This is the rule that catches the most landlords out. The relief is available only when you replace an item you previously provided. It does not cover the first time you equip or furnish a property.
So if you buy a brand-new property to let and spend on furniture and white goods before the first tenant moves in, that initial cost is not deductible under this relief. It is treated as capital expenditure. You can only begin claiming once an item you already supplied wears out and you replace it.
The practical effect: keep clear records of what you provided at the start and when, so that when you replace something later you can show it was a genuine replacement of an item already in service.
The like-for-like rule and upgrades
You can claim the cost of a replacement that is broadly equivalent to the old item. If you simply upgrade to something noticeably better, you cannot claim the full upgraded price - only what a reasonable equivalent replacement would have cost.
Worked example:
- Your basic washing machine fails. A like-for-like replacement would cost GBP 300.
- You decide to buy a premium model for GBP 550 instead.
- You can claim GBP 300 - the cost of the equivalent basic replacement.
- The GBP 250 improvement element is not covered by the relief.
A replacement that is broadly the same is fine even if the new model is slightly better simply because technology has moved on. The test is whether you have made a genuine improvement or just bought the modern equivalent of what you had.
A landlord replacing a worn-out GBP 280 sofa with a similar GBP 320 sofa can claim the full GBP 320 - that is a like-for-like replacement at current prices. A landlord replacing the same sofa with a GBP 900 leather suite can claim only what a similar fabric sofa would have cost, because the rest is an improvement.
Netting off proceeds and disposal costs
The amount you claim is not simply the price of the new item. You have to adjust for what happened to the old one.
The formula is:
| Element | Effect on claim |
|---|---|
| Cost of the new (equivalent) item | Add |
| Incidental costs of disposing of the old item | Add |
| Proceeds from selling or part-exchanging the old item | Subtract |
Example: you replace an old fridge. The equivalent new fridge costs GBP 400. It costs you GBP 20 to have the old one taken away, but the retailer gives you GBP 30 for the old fridge as a trade-in. Your qualifying relief is GBP 400 + GBP 20 - GBP 30 = GBP 390.
This netting-off keeps the relief tied to the real economic cost of the replacement.
How much tax does it actually save?
Because the relief is a deduction from profit rather than a credit, the cash you save equals your marginal Income Tax rate multiplied by the qualifying cost.
| Your band | Marginal rate | Saving on a GBP 400 claim |
|---|---|---|
| Basic rate | 20% | GBP 80 |
| Higher rate | 40% | GBP 160 |
| Additional rate | 45% | GBP 180 |
Scottish taxpayers should apply the relevant Scottish rate to their rental income (the Scottish bands run from 19% up to 48%). The mechanism is identical: the deduction reduces taxable profit, and the saving follows your marginal rate.
Note that the relief reduces taxable profit; it does not interact with the separate basic-rate tax reducer that applies to residential finance costs such as mortgage interest. Those are claimed under a different mechanism, so keep the two clearly apart in your records. If you want to model your overall rental position as a sole trader landlord, the
Self-Employed Tax Calculator
Calculate income tax, Class 2 and Class 4 National Insurance for self-employed and sole traders for 2025/26.
Open Self-Employed Tax calculatorHow to claim
For individuals, you report rental income and expenses on the UK property section of your self-assessment tax return. Replacement of domestic items relief is entered among your allowable property expenses. There is no separate election to make - you simply include the qualifying net cost.
A few practical points:
- Claim in the tax year in which you incur the replacement cost.
- Keep the receipt for the new item and a note of the old item it replaced.
- Where you upgraded, keep evidence of the equivalent basic cost.
- Record any disposal proceeds and disposal costs.
If your total property income is low, remember the GBP 1,000 property allowance exists as an alternative: you can deduct GBP 1,000 instead of your actual expenses if that is more generous, but you cannot do both for the same income. For most landlords with real replacement costs and other expenses, claiming actual expenses (including this relief) will beat the flat GBP 1,000.
Common mistakes to avoid
- Claiming the initial furnishing of a property. That is capital, not a deductible replacement.
- Claiming the full price of an upgrade rather than the like-for-like equivalent.
- Forgetting to deduct trade-in or sale proceeds from the old item.
- Treating a fitted-kitchen or boiler replacement under this relief when it is really a repair.
- Claiming for items in a property that is not residential, or where capital allowances are being claimed on the same items instead.
Bottom line
Replacement of domestic items relief is a straightforward, useful deduction for residential landlords - but it has firm edges. It covers replacements, not first purchases; it is capped at a like-for-like equivalent; and it is net of whatever you recover from the old item. Get those three rules right, keep clean records, and you will claim everything you are entitled to without overstepping. To see how the deduction changes your tax at your own marginal rate, run the numbers through the
Income Tax Calculator
Work out how much income tax you owe using the latest 2025/26 UK tax bands.
Open Income Tax calculatorFrequently asked questions
What is replacement of domestic items relief?
It is a tax deduction that lets residential landlords claim the cost of replacing furnishings and appliances supplied for tenants' use - such as sofas, beds, carpets, curtains, fridges and crockery. You deduct the cost of the replacement item from your rental profits, reducing the Income Tax you pay on that income. It applies to replacements only, not the cost of buying an item for the first time.
Can I claim for the first item I buy for a rental?
No. The relief covers replacements only. The initial cost of furnishing or equipping a property when you first let it is not deductible under this relief and is generally treated as capital. You can only start claiming once you replace an existing domestic item that you had previously provided for the tenant's use in the same property.
What counts as a domestic item?
A domestic item is something provided mainly for the tenant's domestic use. Common examples include beds, sofas, wardrobes, carpets, curtains, linen, crockery, cutlery, fridges, freezers, washing machines, dishwashers and cookers. Fixtures that form part of the building, such as fitted kitchens, baths and boilers, are not domestic items - their replacement is usually handled as a repair instead.
What is the like-for-like rule?
You can only claim the cost of a broadly equivalent replacement. If you upgrade to a better item, you claim what an equivalent basic replacement would have cost, not the full upgraded price. For example, replacing a standard washing machine with a premium one means you claim the cost of a standard equivalent. Any genuine improvement element is not covered by the relief.
Do I deduct the disposal proceeds of the old item?
Yes. If you sell or part-exchange the old item, you reduce your claim by the amount you received. The relief is the cost of the new item, plus any incidental costs of disposal, minus any proceeds from selling the old one. So if you trade in an old fridge against a new one, only the net cost counts toward your relief.
Does the relief apply to furnished holiday lettings?
The rules for furnished holiday lettings changed and that regime has been abolished. For ordinary residential lettings, replacement of domestic items relief is the standard route for claiming furnishing replacement costs. If your situation involves former holiday-let treatment or commercial property, check current gov.uk guidance, as capital allowances rules can differ. When in doubt, take professional advice.
Can companies claim this relief?
Yes. Both individuals and companies letting residential property can claim replacement of domestic items relief, provided the property is not furnished holiday accommodation and capital allowances are not being claimed on the same items. For a company, the deduction reduces taxable rental profits subject to Corporation Tax. The principles - replacement only, like-for-like, net of proceeds - work the same way.
How does the relief affect my tax bill?
The cost you claim is deducted from your rental profit, so the tax saved depends on your marginal rate. A basic-rate taxpayer saves 20% of the qualifying cost, a higher-rate taxpayer 40%, and an additional-rate taxpayer 45%. So a GBP 400 qualifying fridge replacement saves a basic-rate landlord GBP 80 and a higher-rate landlord GBP 160. Use a tax calculator to see your marginal rate.
What records should I keep?
Keep receipts or invoices for every replacement, showing the item, date and cost. Record what the old item was, when it was disposed of, and any proceeds received. If you bought an upgraded item, keep evidence of what an equivalent basic replacement would have cost. HMRC can ask for proof, and self-assessment records should generally be kept for at least the period required by HMRC's record-keeping rules.
Try the calculators
Related reading
Rent-to-Rent Explained: UK Guide and Tax for 2026/27
How rent-to-rent works in the UK, the contracts and consents you need, and how the income is taxed for 2026/27 income tax, NI and Corporation Tax.
Capital Gains Tax Rates 2026/27: What Changed and What to Plan For
CGT rates were equalised in October 2024. Here is what the 2026/27 rules mean for property, shares, and business assets.
How Council Tax Bands Were Set -- and How to Challenge Yours
English council tax bands still use 1991 property valuations. Learn how to check your band, challenge it via the VOA, claim reductions, and how Scotland and Wales differ.