Replacement of domestic items relief

Replacement of domestic items relief is a UK-wide income-tax rule for residential property businesses, so the same statutory test applies in England, Wales, Scotland and Northern Ireland. The important dividing line is not whether the property is furnished, but whether the cost is for a qualifying replacement domestic item rather than a fixture, improvement, or first purchase.

What are the costs of replacing domestic items you can claim?

The statute fixes no figure at all for replacement of domestic items relief: there is no cap, no floor, no percentage test, and no statutory definition of “substantially the same”. If the new item is the same or substantially the same as the old item, ITTOIA 2005 s311A gives a deduction for the expenditure on the new item: “where the new item is the same or substantially the same as the old item, the deduction is equal to the expenditure incurred by P on the new item;”. If the replacement is better than the old item, the deductible amount is limited to the cost of buying a substantially equivalent replacement, not the whole upgraded cost. Incidental capital costs also count: “the deduction is increased by the amount of the incidental expenditure” for disposal of the old item or purchase of the new one. The practical trap is that this relief rewards replacement, not refurnishing: the invoice should tell the story of the old item leaving and the new equivalent item arriving. Abodient fits here as a finance-record tool: it can hold property transactions and tax-return figures, which matters because the relief is proved invoice by invoice, not by a general “furnished property” label.

Can I claim for replacement carpets and furniture in my rental property?

You can claim replacement of domestic items relief for replacement carpets and moveable furniture in a rental property, but not for fitted furniture that has become part of the building. HMRC lists qualifying furnishings as “Furnishings (curtains, rugs, carpets etc)”, so replacement carpets are inside the relief, and ordinary replacement furniture such as beds, sofas, tables and chairs is treated in the same category. The boundary is fixtures: HMRC identifies non-qualifying fitted furniture as “Fitted furniture that has become part of the dwelling-house (e.g. built in wardrobe and cupboards)”. For carpets, the number that matters is not a fixed HMRC rate; the market price is evidential, and Checkatrade gives a broad benchmark that “The average price for carpet is between £6 - £60 per m²”. A landlord claiming for furniture should keep the old item, replacement invoice, disposal or sale evidence, and any contribution from the tenant separate, because a clean replacement trail is more persuasive than a single “furniture package” receipt.

Can you claim replacement of domestic items relief on a boiler?

You cannot claim replacement of domestic items relief on a boiler, but the replacement cost may still be deductible as a repair to the building. ITTOIA 2005 s311A writes boilers out by treating them as fixtures, including “any boiler or water-filled radiator installed in a dwelling-house as part of a space or water heating system.” That means a replacement boiler is not a “domestic item” for this relief even though it is a domestic appliance in ordinary language. The useful “no, but” is HMRC’s repair position: “As these items are fixtures of the building, the cost of replacing these may be an allowable expense as a repair to the building. However, expenditure will not be on repairs if an ‘entirety’ is replaced.” The commercial stakes are not trivial: Checkatrade says “On average, a new combi boiler costs around £1,500 before installation.” The better claim is usually a repairs deduction, not an attempt to squeeze a boiler into domestic items relief.

Does replacement of domestic items relief apply to a furnished holiday let?

Replacement of domestic items relief applies to furnished holiday lets from 6 April 2025 for income tax, because Finance Act 2025 deleted the furnished-holiday-let exclusion from ITTOIA 2005 s311A; for companies, the corresponding commencement is 1 April 2025. The repealing statute says: “In section 311A (replacement domestic items relief)— (a) in subsection (6) , for ‘subsections (7) and (8)’ substitute ‘subsection (8)’ ; (b) omit subsection (7) .” The commencement rule says the amendments apply “for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.” Before that, the old subsection barred relief where “the business consists of or includes the commercial letting of furnished holiday accommodation”. HMRC’s PIM3210 still prints the old exclusion bullet, but statute governs; HMRC’s own page also says the FHL rules cease from 6 April 2025 for income tax and 1 April 2025 for corporation tax. The change is less generous than it sounds: former FHL owners lost capital-allowances treatment and gained a narrower relief for replacement loose domestic items. The 2026 SA105 has no FHL boxes, so a holiday let is reported through the ordinary UK property pages, with income in box 36.

Last reviewed August 2026.

Sources

The statute fixes no figure at all for replacement of domestic items relief: there is no cap, no floor, no percentage test, and no statutory definition of “substantially the same”. — “where the new item is not the same or substantially the same as the old item, the deduction is equal to so much of the expenditure incurred by P on the new item as does not exceed the expenditure which P would have incurred on an item which is the same or substantially the same as the old item.” Source
If the new item is the same or substantially the same as the old item, ITTOIA 2005 s311A gives a deduction for the expenditure on the new item. — “where the new item is the same or substantially the same as the old item, the deduction is equal to the expenditure incurred by P on the new item;” Source
If the replacement is better than the old item, the deductible amount is limited to the cost of buying a substantially equivalent replacement, not the whole upgraded cost. — “where the new item is not the same or substantially the same as the old item, the deduction is equal to so much of the expenditure incurred by P on the new item as does not exceed the expenditure which P would have incurred on an item which is the same or substantially the same as the old item.” Source
Incidental capital costs also count. — “If P incurs incidental expenditure of a capital nature in connection with the disposal of the old item or the purchase of the new item, the deduction is increased by the amount of the incidental expenditure.” Source
Replacement carpets are inside the relief, and ordinary replacement furniture such as beds, sofas, tables and chairs is treated in the same category. — “Furnishings (curtains, rugs, carpets etc)” Source
Fitted furniture that has become part of the building does not qualify. — “Fitted furniture that has become part of the dwelling-house (e.g. built in wardrobe and cupboards)” Source
Checkatrade gives a broad benchmark that the average price for carpet is between £6 and £60 per m². — “The average price for carpet is between £6 - £60 per m²” Source
You cannot claim replacement of domestic items relief on a boiler. — “includes any boiler or water-filled radiator installed in a dwelling-house as part of a space or water heating system.” Source
The replacement cost of a boiler may still be deductible as a repair to the building. — “As these items are fixtures of the building, the cost of replacing these may be an allowable expense as a repair to the building. However, expenditure will not be on repairs if an 'entirety' is replaced.” Source
Checkatrade says a new combi boiler costs around £1,500 before installation. — “On average, a new combi boiler costs around £1,500 before installation.” Source
Replacement of domestic items relief applies to furnished holiday lets from 6 April 2025 for income tax, because Finance Act 2025 deleted the furnished-holiday-let exclusion from ITTOIA 2005 s311A. — “In section 311A (replacement domestic items relief)— (a) in subsection (6) , for “subsections (7) and (8)” substitute “subsection (8)” ; (b) omit subsection (7) .” Source
The commencement rule applies for income tax from the tax year 2025-26 and subsequent tax years. — “The amendments made by Part 1 have effect for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years.” Source
For companies, the corresponding commencement is 1 April 2025. — “The furnished holiday lettings rules cease to apply in tax years commencing on or after 6 April 2025 for Income Tax and for Capital Gains Tax, and 1 April 2025 for Corporation Tax and for Corporation Tax on chargeable gains.” Source
Before 2025-26, the old subsection barred relief for furnished holiday accommodation. — “(7) No deduction is allowed for expenditure in a tax year if— (a) the business consists of or includes the commercial letting of furnished holiday accommodation (see Chapter 6), and (b) the dwelling-house constitutes some or all of that accommodation for the tax year.” Source
Former FHL owners lost capital-allowances treatment and gained replacement of domestic items relief. — “businesses with FHL properties will no longer be eligible for more beneficial capital allowances treatment but will instead be eligible for ‘replacement of domestic items relief’ in line with other property businesses” Source
The 2026 SA105 notes say the FHL regime was abolished from 5 April 2025. — “Please note the Furnished Holiday Lettings (FHL’s) tax regime was absolished from 5 April 2025.” Source