If you’re a landlord and you’ve replaced a sofa, a fridge, a washing machine, or a set of curtains in one of your rental properties, there’s a good chance you can deduct the cost from your taxable rental income.
That’s what Replacement of Domestic Items Relief is for.
It’s one of the most underused reliefs available to landlords. Many don’t know it exists, and those who do often aren’t sure what qualifies, how to calculate the claim, or where to report it on their return.
This guide covers the rules as they stand from the 2025/26 tax year onwards.
What Is Replacement of Domestic Items Relief?
Introduced in April 2016, this relief replaced the old 10% wear and tear allowance. It allows landlords to deduct the cost of replacing qualifying domestic items in a residential rental property from their taxable rental profits.
The key word is replacing. The relief covers the cost of swapping out an item that was already provided for the tenant’s use. It does not cover the initial cost of furnishing a property for the first time. If you buy a new washing machine for a property that never had one, that’s not a replacement – and it doesn’t qualify.
Unlike the old wear and tear allowance (which was limited to fully furnished properties), this relief is not restricted by how the property is furnished. It can apply to furnished, part-furnished, and unfurnished lettings – provided there is an existing item being replaced.
What Qualifies?
The relief covers domestic items provided for the tenant’s use in a residential dwelling. HMRC’s guidance groups these into four categories:
- Moveable furniture: beds, sofas, tables, chairs, free-standing wardrobes, chests of drawers
- Furnishings: curtains, blinds, rugs, carpets, linens, cushions
- Household appliances: fridges, freezers, washing machines, tumble dryers, dishwashers, televisions, microwaves
- Kitchenware: crockery, cutlery, cooking utensils, pots and pans
Small items like bed linen, towels, crockery, and cutlery can also be claimed as allowable expenses under the normal property expense rules, without needing to rely on this relief specifically.
What Doesn’t Qualify
The relief does not apply to fixtures that have become part of the building itself. This includes baths, washbasins, toilets, boilers, radiators, and built-in cupboards or wardrobes that are fixed to the structure of the property.
Those items fall under different rules. Replacing a fixture on a like-for-like basis – such as swapping an old boiler for a new one of similar specification – is usually treated as a repair to the building, which is deductible as a normal property expense.
If you upgrade (for example, replacing a standard boiler with a significantly more powerful system), part or all of the cost may be treated as a capital improvement, which isn’t deductible from rental income but could reduce a future CGT bill when you sell.
The distinction between a domestic item (covered by this relief) and a fixture (covered by the repairs rules) matters, and HMRC does draw the line carefully.
How to Calculate the Claim
The calculation is straightforward. You add up three things and subtract one:
- The cost of the new replacement item
- Any delivery or installation costs
- Any costs of disposing of the old item
- Minus any money you received for the old item (sale proceeds or trade-in value)
The Like-for-Like Rule
If you replace an item with something of a higher specification, you can only claim up to the cost of a like-for-like modern equivalent. The excess isn’t deductible.
For example, if you replace a basic single wardrobe with a large triple wardrobe, you can only claim what a similar single wardrobe would cost today – not the full price of the upgrade.
However, HMRC is clear that a brand-new item is not automatically an “improvement” just because the old one was worn out. A new budget washing machine costing £250 is not an upgrade over a five-year-old machine that cost £200 when it was purchased – that’s just the effect of inflation. You can claim the full £250 in that scenario.
Worked Example
You replace a sofa in your rental property. Here are the numbers:
- New sofa: £600
- Delivery charge: £50
- Removal of old sofa: £30
- Sale of old sofa: £100
Calculation: £600 + £50 + £30 – £100 = £580
That £580 is deducted from your rental income when calculating your taxable profit.
Part-Exchange
If you trade in the old item as part of the deal, the deductible amount is only the additional cash you actually pay. The trade-in value is treated the same as sale proceeds – it reduces the claim.
Furnished Holiday Lettings: What’s Changed
This is an important update for 2026. Under the old rules, properties that qualified as furnished holiday lettings (FHLs) were excluded from Replacement of Domestic Items Relief – they had their own capital allowances regime instead.
The FHL tax regime was abolished from 6 April 2025. Former FHL properties are now treated the same as any other residential letting. HMRC has confirmed that Replacement of Domestic Items Relief is available on replacement items for these properties going forward.
If you own a property that was previously run as a holiday let, you can now claim this relief when you replace qualifying domestic items – something you couldn’t do before April 2025.
Capital allowances are no longer available on new expenditure for these properties (though existing unrelieved capital allowance pools can continue to be claimed until they’re exhausted).
Rent a Room Scheme
If you’re letting a furnished room in your own home under the Rent a Room scheme and claiming the £7,500 tax-free allowance, you cannot also claim Replacement of Domestic Items Relief against that income. The two reliefs are mutually exclusive – you use one or the other, not both.
If your rental income from the room exceeds £7,500 and you opt out of Rent a Room relief to claim actual expenses instead, you can then include replacement domestic items in your expense claim.
How to Claim
You claim the relief through your Self Assessment return. On the UK property pages (form SA105), HMRC provides a specific entry for this:
Box 36: “Costs of replacing domestic items”
Enter the total amount you’re claiming for the tax year. You don’t need to itemise each replacement in the return itself, but you do need to keep records that support the claim – invoices for the new items, receipts for delivery and disposal costs, and evidence of any money received for the old items.
Records should be kept for at least five years after the 31 January filing deadline for the relevant tax year.
Practical Tips
A few things that help landlords make the most of this relief without running into problems:
- Keep receipts from day one. The most common reason landlords miss out on this relief is that they can’t evidence the cost. Get into the habit of saving invoices and delivery receipts as soon as you make a purchase.
- Photograph old items before disposing of them. If HMRC queries whether a replacement was like-for-like or an upgrade, a photo of the old item can support your case.
- Don’t forget incidental costs. Delivery charges, installation fees, and the cost of removing and disposing of the old item are all part of the claim. They’re easy to overlook but they add up.
- Track replacements across multiple properties. If you own several rental properties, keep a log of which items were replaced in which property and when. This makes completing the return faster and helps if HMRC asks questions.
- Consider timing. If you have several items to replace, spreading the purchases across two tax years can help manage your taxable rental profit more evenly – particularly if your income fluctuates.
How Double Point Can Help
Replacement of Domestic Items Relief is just one part of a broader picture in tax planning for landlords.
Between this relief, the mortgage interest restriction, allowable property expenses, and the rules around repairs vs improvements, there’s a lot to get right – and a lot of money left on the table when claims are missed or under-calculated.
At Double Point, we work with landlords to ensure every qualifying expense and relief is correctly claimed on their Self Assessment return. If you own rental property and you’re not sure whether you’re claiming everything you’re entitled to, we can review your position and identify what’s been missed.
Book a free consultation with us today and let’s make sure your property tax affairs are in order.