Landlords are missing a trick

Landlords are not taking full advantages of tax relief on improvements under the new Landlords’ Energy Saving Allowance.

Both private and corporate landlords are not claiming back tax on energy efficient improvements made on rental properties including loft and wall insulation. As a result, hundreds of thousands of pounds are going unclaimed each year.

Landlords can claim back the costs of buying and installing certain energy saving items in the properties they rent out against their taxable profits.

Landlords can claim LESA on expenditure incurred up to 1 April 2015, when the availability of this allowance will end. Landlords can claim back up to £1,500 for each dwelling house – so this can include each residential flat within a block of flats.

The cutoff date is set at April 2015, so plenty of time to update your properties. Eligible energy saving improvements include draught proofing, loft and other types of insulation, cavity and solid wall insulation and hot water insulation.

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