The deadline for tax returns is looming. If you are a residential landlord and have insulated your rental properties, you can reduce your income tax bill by claiming a deduction against your profits of up to £1,500 per property.
The Landlord’s Energy Saving Allowance scheme (LESA) allows landlords to claim the cost of buying and installing the following items:
• draught proofing
• loft insulation
• floor insulation
• cavity wall insulation
• solid wall insulation
• insulation for hot water systems
It’s simple to do. When filling in the Land and Property supplementary pages of your tax return, you should include the costs of these items in box 5.36C. Guidance on LESA can be found in the supplementary notes for the Land and Property pages of your main self-assessment return. Visit www.hmrc.gov.uk/worksheets/sa105notes.pdf for further details.
If you haven’t done the work yet, you will need to do so by the end of March 2008 in order to claim LESA next time round.
“Insulating your property can increase its long-term value, make it more attractive to potential tenants and put your property on a good footing for the launch of Energy Performance Certificates later this year. Not only will it reduce tenant’s energy bills, it can also help alleviate damp conditions making your property a healthier and warmer place for your tenants to live in. It can also reduce unnecessary maintenance costs associated with damp and condensation.” Said Mark Brown, Director of the Energy Efficiency Partnership for Homes.
For more information and free, impartial advice on energy efficiency improvements call 0800 512 012 or visit http://www.energysavingtrust.org.uk/
The Energy Efficiency Partnership for Homes (EEPH) is a network of over 450 organisations from the public, private and voluntary sectors. By working together EEPH aims to reduce the energy consumed by UK households as well as the number of people who are unable to sufficiently heat their homes during winter.