Many landlords are unaware that they could be eligible for up to
£1,500 in tax relief if they improve the energy efficiency of
their residential let properties.
The Landlord's Energy Saving Allowance (LESA) encourages
landlords to make their let properties more energy efficient by
providing an allowance for the cost of acquiring and installing
energy saving items.
The initiative began on 6th April 2004, however, many landlords
are still unaware that they can claim the allowance. Matthew Pocock
from Fisher German chartered surveyors has recently dealt with a
number of landlords who are not claiming tax relief under LESA.
"Up to £1,500 per individual dwelling house can be claimed
where energy saving items are installed. For many who own multiple
properties it can make a significant difference.
"This includes landlords who have a number of properties in the
same building. For example if a landlord owns 6 flats in a building
and made significant energy saving changes to the building, they
may be eligible for an allowance for each dwelling, so 6 lots of
£1,500.
"The LESA is only available on qualifying expenditure incurred
before 6 April 2015 and is available for both private and corporate
landlords who rent out residential property.
The allowance is claimed when filling in a tax return and allows
landlords to improve properties whilst still being able to deduct
expenditure against revenue, rather than it being non-deductable
capital expenditure."
Eligible energy saving items included under the scheme include
loft insulation, solid wall insulation, draught proofing, hot water
system insulation, floor insulation and cavity wall insulation.
Improving the energy efficiency of their let properties will not
only allow landlords to benefit from the LESA but they will also
comply with the Governments Green Deal. This legally requires that
from April 2018 all rented property must have a minimum efficiency
rating of 'E'. It will also keep tenants happier and therefore
ensure that rents remain good.
For further information about claiming LESA or whether you are
eligible, please contact Matthew Pocock on 01858 411208 or email
matthew.pocock@fishergerman.co.uk
For more information about Fisher German, please visit their
website here: www.fishergerman.co.uk