Replacement of Domestic Items Relief for Landlords Guide 2026/27
Replacement of Domestic Items Relief lets residential landlords deduct the cost of replacing worn-out furniture, appliances and kitchenware provided for tenants, based on actual spending rather than a flat allowance. This guide explains what qualifies, the like-for-like rule, and how it differs from the old wear and tear allowance.
What Qualifies for the Relief
The relief covers the cost of replacing furniture, furnishings such as curtains and carpets, household appliances like fridges, washing machines and cookers, and kitchenware, where these items are provided for a tenant's use in a residential letting. It only applies to genuine replacements of items that have worn out or broken -- the initial cost of furnishing a property for the first time is not covered, and is instead generally treated as capital expenditure.
The Like-for-Like Rule
You can claim the cost of a reasonably equivalent replacement, but if you choose to buy a significantly better or more expensive version of the item than the one it replaces, the deduction is generally restricted to what an equivalent, similar-standard replacement would have cost. Any extra you spend upgrading rather than simply replacing is treated as capital improvement, not an allowable running cost of the letting.
Delivery, Installation and Disposal
Reasonable costs of acquiring the replacement item, such as delivery and installation, can generally be included in the claim, and any amount you receive for disposing of, selling on, or trading in the old item reduces the amount you can claim -- the relief is based on the net cost of the replacement, not simply the sticker price of the new item.
How It Replaced Wear and Tear Allowance
Before this relief was introduced, landlords of furnished properties could claim a flat wear and tear allowance each year, calculated as a percentage of rental income, regardless of whether they had actually replaced anything. Replacement of Domestic Items Relief replaced that blanket allowance with a deduction linked to genuine replacement costs actually incurred, and it applies based on what items are provided for tenants rather than assuming only fully furnished properties benefit.
How to Claim
The deduction is included alongside your other allowable property expenses -- such as letting agent fees, insurance, and repairs -- when working out your rental profit on your Self Assessment tax return. Keeping receipts and records of both the old and replacement items helps support the claim if HMRC asks you to justify the amount deducted.
Frequently Asked Questions
What is Replacement of Domestic Items Relief?
Replacement of Domestic Items Relief lets a residential landlord deduct the cost of replacing furniture, furnishings, appliances and kitchenware provided for tenants' use in a let property, against their rental income, when calculating taxable profit.
Does the relief apply to buying an item for the first time?
No. The relief only covers replacing an existing item that has worn out or broken -- it does not cover the initial cost of furnishing a property for the first time, which is generally treated as capital expenditure rather than an allowable revenue deduction.
What items typically qualify for the relief?
Qualifying items generally include furniture, furnishings such as curtains and carpets, household appliances like fridges, washing machines and cookers, and kitchenware, provided they are for the tenant's use in the let residential property.
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What is the "like-for-like" rule?
You can claim the cost of a reasonably equivalent replacement item, but if you buy a significantly better or more expensive version than the original, the deduction is generally restricted to the cost of an equivalent, similar-standard replacement -- any extra spent on a genuine upgrade is treated as capital improvement rather than an allowable replacement cost.
Can I deduct delivery, installation or disposal costs alongside the item cost?
Yes, in most cases reasonable costs of acquiring the replacement, such as delivery and installation, can be included, and any amount you receive for disposing of or trading in the old item is deducted from your claim, since the relief is based on the net cost of replacing the item.
How did this relief replace the old wear and tear allowance?
The former wear and tear allowance let landlords of furnished properties deduct a flat percentage of rental income each year regardless of whether anything was actually replaced. Replacement of Domestic Items Relief replaced that flat allowance with a deduction based on actual replacement costs genuinely incurred, applying to furnished, part-furnished and unfurnished lettings alike (since it depends on what is provided, not a blanket furnished-property assumption).
Does this relief apply to furnished holiday lettings?
Furnished holiday lettings are generally taxed under a separate regime with their own capital allowances rules for furniture and equipment, following the abolition of the furnished holiday lettings tax regime -- check the current rules for how replacement furniture and equipment costs are now treated for this category of letting.
Can I claim the relief on a property let to a family member below market rent?
If the letting is not run on a commercial, arm's-length basis -- for example, rent well below market value to a relative -- the ability to claim ordinary rental expenses, including this relief, can be restricted or disallowed, so check whether your specific arrangement is treated as a commercial letting.
How do I claim the relief?
The deduction is included in your property income calculation on your Self Assessment tax return, alongside other allowable expenses like mortgage interest tax credit, letting agent fees, and repairs, reducing your overall taxable rental profit for the year.
Does the relief cover items in the tenant's own furniture that they bring themselves?
No. The relief only applies to domestic items that you, the landlord, provide for the tenant's use in the let property -- anything the tenant brings and owns themselves is outside its scope since it was never your asset to replace.
Is there a monetary cap on how much I can claim under this relief?
There is no fixed cap on the total amount you can claim -- the deduction is based on the actual, reasonable cost of like-for-like replacements you genuinely incur across the tax year, rather than a percentage limit or set annual allowance as under the old wear and tear rules.
Disclaimer: This guide reflects Replacement of Domestic Items Relief rules as they apply in 2026/27. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
