Replacement of Domestic Items Relief
The tax relief that lets landlords deduct the cost of replacing furnishings and appliances in a rental property. Replacements only: the original purchase is never deductible.
Since April 2016, landlords letting residential property can deduct the cost of replacing domestic items provided for the tenant's use: furniture, furnishings, white goods and other appliances, and kitchenware. The relief replaced the old 10% wear and tear allowance.
The rules that catch people out
- Initial purchases do not qualify. Kitting out a property for its first furnished letting is not deductible under this relief. Only when those items are later replaced does relief apply.
- Like-for-like only. Relief covers the cost of a broadly equivalent replacement. If you upgrade, the deductible amount is capped at what an equivalent replacement would have cost, with improvement element excluded.
- Disposal proceeds reduce the claim. Sell the old sofa for £50 and the claim drops by £50.
- The old item must no longer be available for use in the property.
Keeping the evidence
Keep invoices for the replacement and a note of what it replaced. Fixtures that are part of the building, such as fitted kitchens or bathroom suites, are treated as repairs or capital works instead, which follow different rules. As with all tax matters, check current guidance on GOV.UK and take advice for anything borderline.