Glossary · UK
What is Replacement of Domestic Items Relief?
Tax relief for landlords replacing domestic items in furnished residential lettings, replacing the old Wear and Tear Allowance.
Full Definition
Replacement of Domestic Items Relief (formerly Wear and Tear Allowance) allows residential landlords to deduct the cost of replacing domestic items such as beds, sofas, white goods, curtains, and carpets. The relief covers only the replacement cost -- not the initial purchase -- and is capped at the equivalent modern replacement cost if upgrading to a superior item. It applies to furnished residential lettings and does not apply to furnished holiday lettings (which use capital allowances instead). The old Wear and Tear Allowance, which gave an automatic 10% deduction of net rents, was abolished from April 2016 and replaced with this actual-cost system. Landlords should retain receipts to support claims made on their Self Assessment tax return.