Wear and Tear Budget
Every rental property experiences ongoing wear and tear: carpets wear out, paint scuffs, white goods break, and soft furnishings degrade over time. Since the 10% Wear and Tear Allowance was abolished in 2016, landlords can only deduct the actual cost of replacements — so budgeting for them in advance is essential. This calculator helps you estimate a realistic annual wear and tear budget based on property size and furnishing level.
Why this matters
Landlords who don't budget for wear and tear are regularly surprised by the cost. A furnished property's soft furnishings, white goods, and flooring can cost £3,000–£8,000 to replace over a typical 5-year tenancy.
Key points
- Since April 2016, the flat-rate 10% Wear and Tear Allowance no longer exists
- You can only deduct the actual cost of replacing furniture and furnishings in a furnished property
- Unfurnished properties have much lower wear and tear costs — mainly flooring and decorating
- The standard tenancy deposit (5 weeks of rent) is often insufficient to cover significant tenant damage
- Furnished properties typically command a modest premium in city centres and for young professional tenants
- Professional cleaning and redecorating between tenancies is the most common post-tenancy cost
Frequently asked questions
What happened to the 10% Wear and Tear Allowance?
HMRC abolished the 10% Wear and Tear Allowance in April 2016. It was replaced by the 'replacement of domestic items relief', which allows you to deduct the like-for-like cost of replacing furniture, furnishings, appliances, and kitchenware — but not the initial purchase of these items.
What wear and tear costs can I deduct from rental income?
Under replacement of domestic items relief, you can deduct the cost of replacing: sofas, beds, carpets, curtains, washing machines, dishwashers, refrigerators, ovens, crockery, cutlery, and similar items. You deduct the replacement cost (not the original cost), limited to a like-for-like equivalent.
How much should I budget for wear and tear per year?
A rule of thumb is 1–2% of the contents value per year for a furnished property. For a typical two-bedroom flat with full furnishing worth £8,000, budget £80–£160/month or £960–£1,920/year.
Can I claim for damage caused by tenants?
Damage beyond normal wear and tear can be claimed from the tenancy deposit or pursued through the courts. You cannot deduct tenant damage costs from rental income as a tax expense — only repairs and replacements that would have been needed regardless of the specific tenant.