If you let out a residential property in the UK, you must pay tax on rental profits. One of the most practical ways to reduce your bill is through replacement of domestic items relief, which lets you deduct the actual cost of replacing everyday items like sofas, fridges and carpets from your rental income.
The relief only covers genuine replacements of items already in the property. Initial purchases when first furnishing a rental property do not qualify. It replaced the old wear and tear allowance from 6 April 2016 and continues to apply for landlord tax in 2025/26 and 2026/27.
Claims are made through the property pages of your self assessment tax return, supported by receipts and records kept for at least 5 years after the tax return deadline.
We at The Taxcom can review your rental property tax position and identify the missed claims for you. Here is what you need to know for the 2025/26 and 2026/27 tax years.
What Is Replacement of Domestic Items Relief?
Replacement of domestic items relief is a specific tax relief under section 311A of ITTOIA 2005 that lets individual landlords claim the full cost of replacing certain domestic items in residential lets. It reduces tax on rental income UK by treating actual replacement costs as allowable expenses. For company landlords, equivalent rules sit in CTA 2009 s250A.
This relief exists because capital allowances are generally not available for domestic items in standard residential property. Where you are carrying on a property business letting a dwelling house, this is how you claim tax relief on replacing items like beds, washing machines and curtains.
You can also claim up to £1,000 tax-free property income under the property income allowance, but most landlords with mortgage costs and expenses will benefit more from claiming actual deductions.
Who Qualifies for Replacement of Domestic Items Relief?
Not every landlord or property type qualifies. The relief is designed for residential landlords rather than holiday accommodation.
Qualifying landlords include:
- Individual UK landlords letting residential property on assured shorthold tenancies
- Joint owners submitting self assessment returns
- Partnerships and companies running a property business
The relief is not available for furnished holiday lets or Rent-a-Room schemes. If you use the Rent a Room Scheme, you cannot claim domestic items relief on that same income. Landlords with mixed-use buildings or non-resident status should get landlord tax advice to confirm eligibility.
Which Domestic Items Can Landlords Claim For?
The relief covers movable items like furniture and appliances, not fixtures. Qualifying items include:
- Movable furniture: sofas, armchairs, dining tables, bed frames, mattresses, chests of drawers and free standing wardrobes
- Household appliances: free-standing fridges, washing machines, tumble dryers, dishwashers, electric cookers (not built-in) and microwaves
- Furnishings: curtains, blinds, carpets, rugs and lamps
- Kitchenware: pots, pans, crockery, cutlery, kettles and toasters
The new domestic item must replace an old domestic item that was previously provided for tenant use and is no longer available. Allowable expenses for landlords include qualifying replacement domestic items like carpets and white goods when they meet the conditions.
What You Cannot Claim: Fixtures, Initial Purchases and Improvements
A common mistake is assuming anything replaced in the property qualifies. The initial purchase of domestic items when first letting a property is not covered by replacement of domestic items relief.
Excluded fixtures include: boilers, water filled radiators, built-in ovens and hobs, integrated fridges, built-in wardrobes, baths, toilets, basins and fitted kitchen units. Built in furniture is a fixture, not a domestic item. These may qualify as repairs or capital expenditure instead.
Upgrades beyond like for like replacements are capped at the original item’s cost. If you swap a basic sofa for a designer sofa-bed, your deduction is restricted to the nearest modern equivalent, not the full upgrade price. Landlords should track whether spending is revenue or capital expenditure, as this affects landlord tax deductions for property expenses and potential future Capital Gains Tax.
Conditions A to D: How HMRC Tests Your Claim
According to HMRC’s internal guidance, four conditions must all be met:
- Condition A: You carry on a property business that includes letting a dwelling house.
- Condition B: An old domestic item was provided for the tenant’s exclusive use. A new domestic item replaces it, and the old item is no longer available.
- Condition C: The expenditure satisfies the wholly and exclusive rule for your property business but would otherwise fall under the capital expenditure rule.
- Condition D: No capital allowances have been claimed on the same new item. Items with capital-allowance history are excluded from this relief.
The relief applies only to items previously provided for tenant use. A like for like replacement must match the original item’s quality to qualify for the full cost.
How Much Can You Claim and How to Calculate It
The allowable deduction equals the cost of the new replacement item (capped at the equivalent item if upgrading), plus incidental costs such as delivery, installation and disposing of the old item, minus any amounts received from selling or trading in the old item.
Worked example: A landlord replaces a washing machine that cost £350 originally with a new model at £450 in May 2026, pays £40 delivery and £20 disposal, and sells the old machine for £30. The deduction is (£450 + £40 + £20) minus £30 = £480.
Second example: Replacing carpets in a Manchester flat costs £800 including fitting. No proceeds from disposal. The full deduction is £800. Losses can offset profits from the same rental business, reducing tax on rental income in the UK further.
Consider timing replacements around the 5 April tax year boundary to smooth taxable property income.
How to Claim Domestic Items Relief on Your Tax Return
No separate HMRC form is needed. Landlords claim domestic items relief through the UK property pages of their self assessment return, entering qualifying costs in the allowable expenses for rental income section. Under cash basis accounting, claim when payment is made. Under accruals, when the obligation arises. Stay consistent.
Claims must include receipts for new items and evidence of old items. Accurate classification matters because HMRC landlord tax enquiries often focus on whether items are repairs, capital expenditure or domestic items relief, and on correctly identifying allowable expenses for rental income.
Record Keeping, Evidence and Common Mistakes
HMRC expects clear evidence. Keep records for at least 5 years after the tax return deadline, including:
- Invoices and proof of payment for the new item
- Date the old item was removed, with photos or inventories
- Receipts for sale, part-exchange or recycling fees
Common mistakes include claiming for the initial purchase of furniture in a newly acquired property, treating boilers as domestic items, and forgetting to deduct proceeds from selling old items. Treating a significant upgrade as fully deductible rather than restricting to the reasonable modern equivalent is another frequent error.
With making tax digital for income tax approaching, landlords will increasingly need digital copies of receipts and a clear understanding of buy-to-let tax rules on stamp duty, mortgages and rental income. We offer free tools such as our Tax Calculator and VAT Calculator to help estimate the impact of domestic items claims on your landlord income tax.
Replacement of Domestic Items Relief vs Capital Allowances and Other Reliefs
For standard residential lets, capital allowances are generally not available on domestic items, which is why replacement relief exists. Capital allowances may still apply to fixtures in commercial or holiday let scenarios, writing down qualifying capital expenditure over time, while separate rules govern mortgage interest tax relief for UK landlords. Domestic items relief gives a one-off tax deduction when the replacement is purchased.
The old wear and tear allowance ended on 5 April 2016. Since then, landlords must claim actual replacement costs rather than a flat percentage of rent. Also note that from 6 April 2020, finance cost relief is restricted to basic rate for individual landlords.
Practical Examples: Furniture, White Goods and Carpets in 2025/26 and 2026/27
A landlord replaces an old sofa and armchairs in a two-bed Manchester flat in August 2025 for £900, with no upgrade element and no proceeds. The full £900 is deductible against rental income for 2025/26.
In January 2026, the same landlord swaps an old fridge and washing machine. The new fridge costs £500 and the new replacement item for the washing machine costs £450. Delivery is £60 and disposal £30. The old fridge sells for £40. Total claim: (£500 + £450 + £60 + £30) minus £40 = £1,000.
If a landlord upgrades from laminate to high-end engineered wood flooring, this is likely capital expenditure rather than a replacement domestic item, and affects rental property income tax differently, with potential future CGT relief on the base cost instead.
Review upcoming planned replacements and speak to us before carrying out major works to structure expenditure in the most tax-efficient way.
How The Taxcom Supports Landlords with Domestic Items Relief
We are The Taxcom, a Manchester-based UK tax advisory and accountancy firm working with private landlords, portfolio owners and small property companies, offering specialist rental income tax assistance.
We offer tailored tax advice for landlords, including reviewing replacement domestic items claims, distinguishing between allowable expenses and capital expenditure, and planning around changes in rental profit tax rules.
Our free tools, including the online Tax Calculator, VAT Calculator and Retirement Planner, help you estimate the effect of domestic items relief on your overall taxable property income.
Contact our team now to discuss your case in detail and get expert advice.
Frequently Asked Questions
Can I claim replacement of domestic items relief if I only rent out a room in my own home?
If you use the Rent a Room Scheme, replacement of domestic items relief does not normally apply. The scheme has its own separate allowance. If you opt out and declare actual rental income and landlord allowable expenses instead, you may be able to use domestic items relief, so compare both options carefully.
Does domestic items relief apply if my tenant damages an item and I claim on insurance?
Where an insurance payout covers all or part of the cost of a new domestic item, your deduction is reduced by the amount reimbursed. Only the net cost you bear after insurance can be claimed. Keep records of the claim and settlement with your property tax records.
What happens if I use a domestic item partly for personal use?
Relief is only available where the item is for the tenant’s exclusive use. If you also use the item privately, the cost must be apportioned. Only the business proportion relating to taxable property income can be claimed.
Can I backdate claims for domestic items I forgot to include in previous years?
You can usually amend self assessment returns for up to one year after the filing deadline, and overpayment relief may extend further back.
If you suspect you have missed significant claims, ask us to review your past landlord tax returns. Low-income households may also access financial relief through various local and national schemes, including local councils that operate welfare assistance schemes for residents facing financial hardship. Charitable organisations provide grants for essential household items, and many local councils offer discretionary assistance payments for basic household needs.
Emergency assistance programs can provide support after disasters like floods or fires, and crisis support programs assist with essential items after financial shocks.
Budgeting advances are interest-free loans available for those on Universal Credit, while the Reuse Network connects households with local centres for refurbished appliances. Programs may provide vouchers or direct grants for white goods in crisis situations, and grants may cover costs for white goods, furniture and heating items. Eligibility for assistance depends on income level and emergency circumstances.
How does domestic items relief interact with joint ownership of a rental property?
The total qualifying cost of replacing domestic items is shared between joint owners in the same proportion as their share of taxable property income, unless a different beneficial ownership has been agreed and notified. Each owner includes their share in their own self assessment, and consistent records between owners are important in case of HMRC enquiries.