Replacement of Domestic Items Relief for Landlords Explained
How replacement of domestic items relief works for UK landlords. What qualifies, the like-for-like rule, upgrade costs, and worked examples for your return.
Key Actions
- Check whether items you've replaced in your rental property qualify for this relief
- Keep receipts for all replacement items including delivery and installation costs
- Note the cost of a like-for-like equivalent when upgrading to a higher-spec item
- Deduct any proceeds from selling or part-exchanging the old item
- Record replacement claims separately from repairs on your tax return
Replacement of domestic items relief lets landlords deduct the cost of replacing furniture, appliances, and other moveable items in a residential rental property. It replaced the old wear and tear allowance from April 2016, and applies to both furnished and unfurnished lettings.
If you've replaced a sofa, washing machine, curtains, or any other domestic item in your rental property, you can claim the cost as an expense on your Self Assessment return — provided you follow HMRC's rules on what qualifies and how to calculate the deduction.
What Is Replacement of Domestic Items Relief?
Replacement of domestic items relief is a tax deduction that allows residential landlords to claim the cost of replacing moveable items provided for a tenant's use. It covers the new item's cost, plus delivery and installation, minus any proceeds from disposing of the old item.
Key points:
- Applies from 6 April 2016 onwards (replacing the wear and tear allowance)
- Available to all residential landlords — furnished, part-furnished, and unfurnished
- Covers replacements only — not the initial purchase of items for a new property
- Cannot be claimed alongside capital allowances for the same item
The relief is claimed as an expense on your Self Assessment tax return, reducing your taxable rental profit.
What Qualifies as a Domestic Item
Domestic items are moveable items provided for a tenant's use in a residential property. HMRC defines four categories:
Moveable Furniture
Sofas, armchairs, tables, chairs, bed frames, mattresses, wardrobes, chests of drawers, bookshelves, desks
Furnishings
Curtains, blinds, carpets, rugs, cushions, bedding, towels, lampshades
Household Appliances
Fridges, freezers, washing machines, tumble dryers, dishwashers, ovens, hobs, microwaves, vacuum cleaners, televisions
Kitchenware
Crockery, cutlery, pots and pans, utensils, glassware
Items That Don't Qualify for Domestic Items Relief
Not everything in a rental property counts as a domestic item for this relief:
- Fixtures — items installed or fixed so they become part of the building (baths, toilets, sinks, boilers, fitted kitchens, fitted wardrobes, radiators)
- Initial purchases — buying items for a property for the first time (e.g., furnishing a newly acquired rental)
- Repairs to existing items — fixing a broken appliance rather than replacing it (this is a repair expense instead)
The key distinction: If an item is fixed to the building and can't be moved without damaging the property, it's a fixture — not a domestic item. Fixtures may qualify as a repair or improvement, but not under this relief.
The Like-for-Like Replacement Rule
HMRC's like-for-like rule determines how much you can deduct when the replacement item is different from the original.
Same Quality Replacement
If you replace an item with one of broadly the same quality and standard, you deduct the full cost of the new item.
Example: Sarah replaces a 5-year-old fridge-freezer (originally £400) with a new one costing £450. The new one is the same size and specification — the price increase reflects inflation, not an upgrade. She claims the full £450.
Important: A brand-new item is not automatically considered an upgrade over a worn-out one. HMRC accepts that replacing old with new is not an improvement in itself — it's restoring the property to its previous standard.
Upgrade Replacement
If you replace an item with a substantially better version, you can only deduct the cost of the like-for-like equivalent — not the actual cost paid.
Example: James replaces a basic washing machine (like-for-like equivalent: £350) with a premium model costing £800. He can claim £350 — the cost of replacing like with like. The remaining £450 is capital expenditure and cannot be deducted.
How to determine the like-for-like cost: Check the current price of a similar item to what you're replacing — same size, same basic functionality, same quality level. Retailers' websites are a practical way to evidence this.
How to Calculate Replacement of Domestic Items Relief
The formula for replacement of domestic items relief is:
Cost of new item + delivery and installation costs − disposal proceeds = deduction
Including Incidental Costs
You can add the cost of:
- Delivery of the new item
- Installation (e.g., plumbing in a washing machine)
- Disposal of the old item (e.g., paying for removal)
These incidental costs are included in full, even when you're claiming a reduced amount due to an upgrade.
Deducting Disposal Proceeds
If you sell the old item or receive a part-exchange credit, you need to subtract this from your claim.
Example: Sarah replaces a sofa costing £600. She sells the old sofa for £50 on Facebook Marketplace. Her deduction is £600 − £50 = £550. If the new sofa was delivered for £30, her total claim is £550 + £30 = £580.
Worked Example: Upgrade With Disposal
James replaces a double bed and mattress. The old set was basic; he upgrades to a premium version.
| Item | Amount |
|---|---|
| Actual cost of new bed and mattress | £1,200 |
| Like-for-like equivalent cost | £500 |
| Delivery charge | £40 |
| Sale of old bed on Gumtree | −£30 |
| Allowable deduction | £510 |
The deduction is capped at the like-for-like cost (£500), plus delivery (£40), minus disposal proceeds (£30).
Replacement of Domestic Items Relief vs Repairs vs Improvements
Understanding where this relief sits alongside repairs and improvements helps you categorise expenses correctly:
| Type | Tax treatment | Example |
|---|---|---|
| Repair | Fully deductible as revenue expense | Fixing a broken oven element |
| Replacement domestic item | Deductible under this relief (like-for-like) | Replacing a broken oven with a new one |
| Improvement | Capital expenditure — not deductible from rental income | Installing an oven where there wasn't one before |
If you're repairing an existing item, claim it as a landlord expense. If you're replacing a moveable item with a new one, use this relief. If you're adding something new or upgrading a fixture, it's capital expenditure.
Record Keeping for Domestic Items Relief Claims
Keep records that support each replacement claim on your tax return:
- Receipt or invoice for the new item showing the date, description, and cost
- Evidence of the old item — a photo, the original purchase receipt, or a note describing what was replaced
- Like-for-like evidence (for upgrades) — a screenshot or printout of a comparable item's current price
- Disposal records — receipt from sale, part-exchange credit note, or confirmation of disposal
- Delivery and installation receipts
You don't need to submit these with your tax return, but HMRC can request them during a compliance check.
Frequently Asked Questions
Can I claim domestic items relief for the first items in a rental property?
No. Replacement of domestic items relief only covers replacements — not initial purchases. If you buy furniture to furnish a property for the first time, this cost is capital expenditure. You can only claim under this relief when you later replace those items.
Does domestic items relief apply to unfurnished rental properties?
Yes. Despite being called "domestic items" relief, it applies to any residential letting where you replace a qualifying item — furnished, part-furnished, or unfurnished. Even an unfurnished property may have items like curtains or a cooker that need replacing.
What happened to the wear and tear allowance?
The wear and tear allowance was abolished on 5 April 2016. It allowed furnished property landlords to deduct 10% of rental income as a flat-rate deduction for furnishing costs, regardless of actual spending. The replacement of domestic items relief replaced it, requiring landlords to claim based on actual expenditure instead.
Can landlords claim domestic items relief on furnished holiday lettings?
From 6 April 2025, the furnished holiday lettings (FHL) regime was abolished. Former FHL properties are now treated as standard residential lettings, so replacement of domestic items relief applies to them from the 2025/26 tax year onwards. Previously, FHL landlords claimed capital allowances instead.
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules change frequently. Always verify current requirements on GOV.UK or consult a qualified accountant for your specific situation.
Official Sources
- Replacement of domestic items relief (PIM3210) - GOV.UK
- Work out your rental income - GOV.UK
- Property income manual: contents - GOV.UK