From Wear and Tear Allowance to Replacement of Domestic Items Relief: What Landlords Can Claim (2026/27)
How landlords claim for replacing furniture and appliances in a let property in 2026/27, why the old 10% wear and tear allowance was scrapped, and what actually qualifies now.
Why the old system was scrapped
Until April 2016, landlords letting a fully furnished property could claim the wear and tear allowance — a flat 10% deduction of net rental income (after certain other deductions), every single year, whether or not they had actually spent any money replacing furniture or appliances that year. This was widely criticised as poorly targeted: a landlord who replaced nothing got the same tax relief as one who genuinely replaced a worn-out sofa, washing machine and carpet in the same tax year.
The government replaced it with Replacement of Domestic Items Relief, which ties the deduction directly to actual, evidenced spending on genuine replacements, rather than an arbitrary percentage of rent.
Buy-to-Let Calculator
Analyse the profitability of a buy-to-let investment including tax and costs.
Open Buy-to-Let calculatorWhat actually qualifies
The relief covers the cost of replacing:
- Furniture (beds, sofas, tables, wardrobes)
- Furnishings (curtains, carpets, floor coverings, linen)
- Household appliances (washing machines, fridges, freezers, cookers, dishwashers)
- Kitchenware (crockery, cutlery)
Crucially, the relief only applies where:
- An item that was already provided in the property is being replaced because it is worn out, broken or no longer usable, and
- The old item is disposed of (sold, scrapped or given away), and
- The new item performs a similar function to the old one.
The "first purchase never qualifies" rule
A common and costly mistake is claiming for furniture or appliances bought when a property is first let out or first furnished. Because there was no existing item being replaced, this initial spend is treated as capital expenditure (part of setting up the letting business) rather than a revenue expense, and cannot be deducted through this relief. Only subsequent replacements, once the original furnishing is worn out and swapped for new, become deductible.
Worked example: upgrading beyond like-for-like
Suppose a landlord replaces a tenant's old washing machine, which cost £300 new some years earlier, with a new washing machine costing £450, because a directly equivalent model is no longer available and the nearest comparable replacement costs more due to general price inflation.
- If £450 represents a reasonable, broadly equivalent replacement (accounting for the fact that identical old models are rarely still sold), the full £450 is typically deductible as a like-for-like replacement, since "equivalent" is judged against what a similar standard replacement would cost today, not the original historic purchase price.
- If instead the landlord chooses a significantly higher-specification machine — for example, a much larger capacity or premium smart-connected model costing £700, when a standard equivalent replacement would have cost £450 — only the £450 equivalent-replacement cost is deductible as an expense. The additional £250 is treated as capital expenditure, not deductible against rental income in the year of purchase.
Disposal costs are included
If disposing of the old item comes with a cost — for example, a removal charge for a large piece of furniture or a recycling fee for a white good — this cost can be added to the qualifying replacement cost and deducted alongside the purchase price of the new item.
Record-keeping matters
Because the relief depends on demonstrating a genuine replacement rather than a first purchase, landlords should keep clear records: receipts for the new item, evidence the old item existed and was disposed of (photos, disposal receipts, or a note in the tenancy inventory), and dates that tie the replacement to the specific tenancy and property. This evidence becomes important if HMRC queries a claim, particularly for larger or more unusual replacement costs.
Rental Yield Calculator
Calculate gross and net rental yield for buy-to-let properties.
Open Rental Yield calculatorFrequently asked questions
What was the wear and tear allowance and why was it scrapped?
The wear and tear allowance let landlords of furnished properties deduct a flat 10% of rental income each year, regardless of whether they actually replaced any furniture or appliances. It was scrapped from April 2016 because it rewarded landlords who spent nothing on replacements just as generously as those who did, and replaced with Replacement of Domestic Items Relief, which only allows a deduction when a genuine replacement actually happens.
What does Replacement of Domestic Items Relief actually cover?
It allows a deduction for the cost of replacing furniture, furnishings, household appliances (such as washing machines, fridges, cookers) and kitchenware in a let residential property, where the old item is disposed of and a new one purchased to replace it, used for a similar purpose.
Can I claim for the very first purchase of furniture in a newly let property?
No. The relief only applies to replacements of items that already existed in the property and were being used by the tenant. Initial purchases of furniture or appliances for a previously unfurnished or newly acquired property do not qualify — only genuine like-for-like replacements do.
How much can I claim if the new item is more expensive than the old one?
You can only claim the cost of an equivalent replacement, capped at what a like-for-like standard replacement of the same functionality would have cost. If you upgrade to a significantly better or larger version, the excess above the equivalent replacement cost is treated as capital expenditure and cannot be deducted as an expense.
Are removal and disposal costs of the old item included?
Yes. Reasonable costs of disposing of the old item (for example, a removal or recycling fee) can be added to the qualifying cost of the replacement, alongside the purchase price of the new item itself.
Does this relief apply to furnished holiday lettings?
Furnished holiday lettings previously had access to full Capital Allowances on furniture and equipment, a more generous regime than Replacement of Domestic Items Relief. Following the abolition of the separate furnished holiday lettings tax regime, these properties are now taxed under the same rules as ordinary rental property, meaning Replacement of Domestic Items Relief now applies to them in the same way as any other let residential property.
Do unfurnished properties qualify for this relief?
Yes, in a more limited way. Replacement of Domestic Items Relief can still apply to items provided in an otherwise unfurnished let, such as replacing a fitted appliance like an integrated oven or fridge that was included with the property, even if the tenant supplies their own furniture.
Is there a limit on how many items I can claim for in a single tax year?
No fixed annual cap exists on the number of qualifying replacement claims, but each claim must relate to a genuine, itemised replacement, and landlords should keep receipts and records of both the disposal of the old item and the purchase of the new one to support the claim if queried by HMRC.
Does Replacement of Domestic Items Relief apply to commercial lets or only residential?
It applies only to residential lettings. Furnished commercial properties have a different tax treatment for fixtures, fittings and equipment, generally falling under the Capital Allowances regime instead.
How does this relief interact with Section 24 mortgage interest restriction?
The two rules are entirely independent. Replacement of Domestic Items Relief remains a normal deductible expense against rental income in full, unaffected by the Section 24 restriction, which applies only to mortgage interest and other finance costs, not to furniture or appliance replacement costs.
Try the calculators
Related reading
Section 24 Mortgage Interest Restriction: A Full Worked Example (2026/27)
A complete worked example of how Section 24 restricts mortgage interest relief for landlords in 2026/27, comparing pre-2017 rules with today's 20% tax credit system.
Are Letting Agent Fees Tax-Deductible? UK Landlord Guide 2026
Letting agent and property management fees are fully deductible against UK rental income for landlords. What counts, what doesn't, typical fee percentages, and a worked example for 2026/27.
Non-Resident Landlord Scheme (NRL1): How UK Rental Income Is Taxed From Abroad (2026/27)
How the Non-Resident Landlord Scheme works in 2026/27 — the NRL1 form, letting agent and tenant withholding obligations, and how to receive rent gross instead.