Replacement of Domestic Items Relief
Quick answer
The tax relief that lets landlords deduct the cost of replacing furnishings and appliances in a let property — beds, sofas, carpets, curtains, white goods, crockery. It replaced the old Wear and Tear Allowance in April 2016. It covers the like-for-like replacement cost only, not the first-time purchase of an item and not any improvement element.
At a glance
- Since
- April 2016 (replaced Wear & Tear Allowance)
- Covers
- Replacement cost, not initial purchase
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Open full guideWhy Replacement of Domestic Items Relief matters for landlords
This relief is where landlords recover the real cost of keeping a property furnished and functional, but it has two traps. First, the initial provision of an item when you first furnish a property is not deductible — only the later replacement is. Second, if you upgrade (a basic washing machine replaced by a top-of-the-range one), only the cost of an equivalent like-for-like replacement qualifies. Keep the old-item and new-item invoices so the deductible amount is evidenced.
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Official sources
LetCompliance editorial reviews this entry every quarter against the sources above. Always confirm specific duties with a qualified solicitor or your local council.
Related terms
Capital Allowances
Tax relief for capital spending on qualifying "plant and machinery". For a standard residential letting they are generally NOT available — furniture and appliances are covered instead by Replacement of Domestic Items Relief. Capital allowances mainly apply to equipment in the communal areas of some HMOs and to commercial property; the furnished holiday let regime that allowed them was abolished from April 2025.
Allowable Expenses
The day-to-day running costs a landlord can deduct from rental income before tax. They must be wholly and exclusively for the letting — letting agent fees, repairs and maintenance (not improvements), landlord insurance, ground rent and service charges, accountancy, and utility or council tax you pay. Mortgage interest is handled separately as a 20% tax credit under Section 24, not as an expense.
Capital Expenditure vs Revenue Expenditure
The line that decides whether a cost reduces your rental profit now or your Capital Gains Tax later. Revenue expenditure (repairs, maintenance, replacing like-for-like) is deducted from rental income in the year you spend it. Capital expenditure (improvements, extensions, first-time installation of something new) is added to the property’s cost base and only counts against CGT when you sell.
Mileage Allowance
A simplified way to claim the cost of driving for your lettings business: 45p per mile for the first 10,000 business miles in a tax year and 25p per mile after that. You claim either mileage OR the actual running costs of the vehicle, not both, and you must keep a log of business journeys (inspections, repairs, viewings).
Remortgaging
Switching a mortgage to a new deal, either with the same lender (a product transfer) or a new one, usually when a fixed or tracker period ends. Landlords remortgage to avoid rolling onto the lender’s higher standard variable rate, or to release equity to fund another purchase.
Rent a Room Relief
A scheme letting you earn up to £7,500 a year tax-free from letting a furnished room in your own home. The threshold halves to £3,750 if someone else (for example a partner) also receives income from the same letting. It applies to resident landlords with a lodger, not to a separate buy-to-let property.