Is a New Kitchen Tax Deductible for Landlords?
Same-footprint replacement is a repair; extra units or a bigger footprint is capital; appliances use replacement-of-domestic-items relief. How to split one invoice three ways.
The short answer
It depends on what you did. Replacing a tired kitchen with one of broadly similar standard and layout is a repair — deductible in full. Making it bigger, higher-spec or moving walls is an improvement — capital. Free-standing appliances follow their own rule (replacement of domestic items relief).
A kitchen is the expense most likely to be split three ways on one invoice: part repair, part improvement, part domestic items. Getting the split right matters because only the repair element cuts this year’s tax.
The HMRC line
PIM2020 is explicit that replacing a fitted kitchen with a modern equivalent is a repair, even if the new units are better made. The test is standard and function, not price: base units, worktops, sink and tiling replaced on the same footprint = repair. Extra units, an extension, a knocked-through wall, granite where there was laminate as a deliberate upgrade = improvement.
Three parts of a kitchen invoice
| Item | Treatment |
|---|---|
| Units, worktops, sink, taps, tiling — same footprint, similar standard | Repair — deduct in full |
| Additional units, island, larger footprint, structural changes | Capital improvement — CGT base cost |
| Free-standing fridge, cooker, washing machine replaced | Replacement of domestic items relief — deduct the like-for-like cost |
| Integrated (fitted) appliances replaced like-for-like | Repair to the building — deduct |
| Brand-new appliance where none existed | Not deductible (no replacement) — capital |
Worked example — a £9,000 refit
A £9,000 refit is agreed with the fitter as: £6,000 like-for-like units and finishes, £2,000 for two extra cabinets and a breakfast bar, £1,000 for a replacement free-standing cooker. The deductible revenue amount is £7,000 (£6,000 repair + £1,000 domestic-item replacement); £2,000 is capital.
| Deducting £7,000 in 2026/27 | Effect |
|---|---|
| Basic-rate landlord (20%) | £1,400 less tax |
| Higher-rate landlord (40%) | £2,800 less tax |
| Additional-rate (45%) | £3,150 less tax |
| From April 2027 (property rates 22/42/47%) | slightly more — the deduction is worth more as rates rise |
Ask the fitter to itemise
A single-line invoice for “new kitchen” invites HMRC to treat the whole thing as capital. A quote that separates replacement from additions is the cheapest tax planning you will ever do.
Replacement of domestic items relief — the rules
Since April 2016 landlords deduct the cost of replacing furniture, furnishings, appliances and kitchenware provided for tenants — but not the initial purchase. The deduction is the cost of a like-for-like item; an upgrade is limited to what the equivalent would have cost. Any sale proceeds from the old item reduce the claim. Fitted items are part of the building and follow the repair rules instead.
What to keep
The invoice describing the work, proof of payment, and — for anything near the repair/improvement line — a sentence in your records saying what was there before. HMRC enquiries into landlord expenses turn on that single fact. Digital copies satisfy MTD’s record-keeping rules.
Where it goes under Making Tax Digital
If you are inside MTD for Income Tax (mandated from April 2026 above £50,000 gross), the cost belongs in your quarterly update under the matching expense category, in the quarter you paid it (cash basis is the default for landlords). Get the category right now — the final declaration only tidies totals, it does not re-classify. Check whether MTD applies to you.
HMRC PIM2020 (fitted kitchen as repair) · ITTOIA 2005 s.311A replacement of domestic items relief (gov.uk guidance) · rates from our verified 2026/27 dataset. Checked 31 Aug 2026.
Quick answers
Only the part that improves. Like-for-like replacement of units, worktops and finishes on the same footprint is a repair and deductible; extra units, a larger footprint or structural work is capital.
If it replaces one you previously provided for tenants, yes — under replacement of domestic items relief, up to the cost of a like-for-like item. A first-time purchase is not deductible.
HMRC accepts modern equivalents, but a deliberate step up in quality is an improvement. Claim the cost a like-for-like laminate replacement would have been; the excess is capital.
The repair element goes in Box 25 (repairs and maintenance) and the domestic-items element in Box 36 (cost of replacing domestic items). The improvement element is recorded for CGT only.