Energy Efficiency in Rented Properties
Posted: Thursday 25 February 2010
The need to make properties energy efficient is a topical issue facing private landlords. Those put off by the potential cost of upgrading properties to make them more energy efficient may like to consider the Landlords Energy Savings Allowance. This Government scheme gives tax breaks to landlords to help with the cost of energy efficient improvements.
Landlords who pay income tax (excluding corporate landlords) and who let residential property can take advantage of the scheme in relation to expenditure on buying or installing qualifying energy saving items incurred before 6 April 2015. Tax relief of up to £1500 per property is allowed, thereby reducing a landlord’s taxable income by the amount they spend on qualifying items. This applies irrespective of the number of properties a landlord may own.
The qualifying energy saving items are:-
- Loft insulation;
- Solid wall insulation;
- Cavity wall insulation;
- Floor insulation;
- Hot water tank and pipe insulation; and
- Draft-proofing.
