If you’ve heard older landlords mention the “wear and tear allowance,” you might wonder why you can’t find it on your tax return. That’s because it was abolished in April 2016. Here’s what replaced it — and how the new system actually works in your favour if you’re replacing items in your rental property.
What Was the Wear and Tear Allowance?
The old wear and tear allowance let landlords of furnished properties claim 10% of their annual rent as a deduction, regardless of whether they actually replaced anything. It was simple — no receipts needed, no tracking required.
But it wasn’t fair. A landlord who never replaced a single item got the same tax relief as one who bought a new washing machine, sofa, and carpets. So HMRC scrapped it.
What Replaced It?
Since April 2016, landlords claim Replacement Domestic Items Relief instead. The key word is “replacement.” You can only claim when you replace an item — not when you buy something for the first time.
The relief covers the cost of replacing:
- Furniture (beds, sofas, tables, chairs, wardrobes)
- Furnishings (curtains, carpets, rugs)
- Appliances (washing machines, fridges, cookers, dishwashers)
- Kitchenware (crockery, cutlery — if provided furnished)
These must be items for the tenant’s use. You can’t claim for replacing your own furniture if you live in the property part-time.
How the Relief Works
When you replace an item, you deduct the cost of the new item from your rental income — just like any other allowable expense. But there are conditions:
Like for like: You can only claim the cost of an equivalent item. If you replace a basic washing machine with a premium model, you claim the cost of a basic replacement, not the upgrade.
No first-time purchases: If the property was unfurnished and you’re furnishing it for the first time, that’s not a replacement. No relief.
Deduct any sale proceeds: If you sell or part-exchange the old item, subtract that amount from your claim.
A Worked Example
Rachel’s rental flat has a 10-year-old fridge that stops working. She replaces it with a new one costing £350. A basic equivalent fridge would cost £280.
- Cost of new fridge: £350
- Cost of equivalent item: £280
- Proceeds from selling old fridge: £0
Rachel can claim £280 as a deductible expense — the cost of a like-for-like replacement.
If she’d sold the old fridge for £30 on Facebook Marketplace, her claim would be £280 − £30 = £250.
What About Repairs vs Replacements?
There’s an important distinction:
Repairs are deductible as normal expenses — fixing a broken drawer, repairing a washing machine drum, patching a carpet.
Replacements fall under this relief — swapping a broken washing machine for a new one, replacing worn-out carpets entirely.
If you can repair it, that’s usually a simpler deduction. If it’s beyond repair and needs replacing, use the replacement domestic items relief.
Does It Apply to Unfurnished Properties?
Yes — and this is actually an improvement on the old system. The wear and tear allowance only applied to furnished lets. The replacement relief applies to all residential lets, furnished or unfurnished.
So if your unfurnished property includes a cooker, carpets, or curtains (as most do), you can claim when you replace them.
Keeping Records
Unlike the old flat-rate allowance, you’ll need evidence:
- Receipts for the new item
- Records showing there was an old item being replaced
- Evidence of the old item’s disposal or sale value
Keep these for at least six years in case HMRC asks questions.
Is It Better or Worse?
It depends on your situation. Landlords who rarely replaced anything lost out when the old allowance disappeared. But landlords who regularly maintain their properties often claim more under the new system — because they’re claiming actual costs, not just 10%.
The new relief rewards landlords who invest in their properties. If that’s you, make sure you’re claiming everything you’re entitled to.
Replacement domestic items relief only applies to residential lets, not commercial properties or furnished holiday lets.