The wear and tear allowance that allowed landlords to reduce the tax they paid on furnished property lets was withdrawn at the end of the 2015-16 tax year. The 10% deduction was available to landlords regardless of whether furnishings in their property were replaced or not. The wear and tear allowance was replaced by a new relief known as the Replacement Domestic Item Relief from April 2016. The new relief is restricted to claims for tax relief when they actually replace furniture, furnishings, appliances and kitchenware. The allowance is available for the cost of domestic items such as movable furniture, household appliances, kitchenware and furnishings such as curtains and carpets.The amount of the deduction is based on:the cost of the new replacement item, limited to the cost of an equivalent item if it represents an improvement on the old item (beyond the reasonable modern equivalent); plusthe incidental costs of disposing of the old item or acquiring the replacement; lessany amounts received on disposal of the old item.The rules do not apply to: furnished holiday lettings as capital allowances continue to be available or to the Rent a Room scheme. HMRC’s guidance has recently been updated.