Replacement of domestic items relief: a portfolio landlord’s checklist

Check replacement domestic items relief across your rental portfolio: qualifying costs, upgrades, disposal proceeds and the evidence to keep.

Replacement of domestic items relief can allow a property business to deduct qualifying replacement furniture, furnishings, appliances and kitchenware. It does not cover the initial purchase under this relief. For portfolio landlords, the practical task is to identify what was replaced, separate any improvement element and retain evidence of the net qualifying cost. [1]

Start with the item, not the invoice total

HMRC lists movable furniture, carpets, curtains, household appliances and kitchenware as examples of domestic items. Fixtures that form part of the building, such as boilers and fitted bathroom equipment, are not domestic items for this relief; their replacement needs separate consideration under the repairs rules. [1]

Before recording a replacement as a potential claim, establish that:

The business includes letting a dwelling-house.
An old domestic item has been replaced and is no longer available for the tenant’s use.
The replacement is provided for the tenant’s exclusive use in that dwelling.
The expenditure satisfies the business-purpose condition.
Capital allowances have not been claimed on the expenditure on the new item. [1]

Calling a purchase a “replacement” in your records does not establish eligibility. Record the old item and the reason for replacing it.

Calculate the qualifying cost

Where the replacement is broadly the same standard, the starting point is its cost. Where it represents an improvement, HMRC limits the deduction to the lower of the actual cost and the cost of an equivalent replacement. Eligible incidental purchase and disposal costs can increase the deduction; sale proceeds or a trade-in allowance reduce it. [1]

Illustrative example: A replacement sofa of equivalent quality costs £600. The old sofa sells for £100. With no other relevant costs, the deduction is £500. That is a deduction in calculating profit, not a £500 tax refund. [1]

Include holiday accommodation in the review

Do not apply the former furnished holiday lettings exclusion to current expenditure without checking the tax period. The separate regime ceased from 6 April 2025 for Income Tax and 1 April 2025 for Corporation Tax. HMRC confirms that replacement domestic items relief is available under the ordinary rules following repeal. Rent a Room relief remains a separate restriction. [1][2]

Use the same evidence checklist across every property

For each proposed claim, keep the property address, item description, purchase date, invoice, details of the old item, disposal proceeds and any comparison used to identify an improvement element. This is a suggested working file: it helps your adviser review the facts rather than reconstruct them.

Use the replacement of domestic items relief calculator to explore the cost calculation. The result does not establish eligibility.

LetSentry supports per-property expense records and receipt attachments. Those records can support your year-end review; you or your adviser remain responsible for the tax treatment. See LetSentry for buy-to-let portfolios.

Official sources

1. HMRC PIM3210: replacement of domestic items relief 2. HMRC PIM4165: repeal of furnished holiday lettings rules

General information for landlords with property in England, not individual tax or legal advice. Check your circumstances with a qualified adviser.

Sources: - HMRC PIM3210: replacement of domestic items relief (accessed 2026-09-21): https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim3210 - HMRC PIM4165: repeal of furnished holiday lettings rules (accessed 2026-09-21): https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4165

Published: 2026-10-05.

Last reviewed: 2026-09-21.

General summary; not legal advice.