Landlord reminder on energy saving tax break

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by Gill Montia

The National Landlords’ Association (NLA), the professional body for UK landlords, is reminding its members to make use of the Landlord’s Energy Saving Allowance (LESA).

LESA allows landlords to claim tax relief against 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.

The maximum claim per property is £1,500 which can make a tax saving of £600 for a higher rate income tax payer and £300 for someone on the basic rate.

Bearing in mind that 2008 sees the introduction of the Energy Performance Certificate (EPC), landlords should by now be checking out the insulation in their properties.

From 1st October, all rental properties with a new tenancy in England and Wales will be required to have an EPC.

The certificates will allow prospective tenants to see how energy efficient a rental property is and include this in their decision making, given that less efficient properties will cost more to heat.