Under a current Government energy scheme – Landlord’s Energy Saving Allowance – landlords can claim income tax relief on money they spend to implement energy efficiency measures in properties they let.
Only a few weeks remain in order for eligible landlords to apply for the £1,500 tax relief for each property they own where relevant work has been carried out (such as insulation being added or a new boiler being installed).
However, landlords can only submit claims until 6th April 2015, which is also the date when the tax benefit could be permanently abolished.
From April 2018, any rental property will be required to have an energy rating of Band E or above, otherwise a landlord will not legally be able to let out the property to a new tenant.
This means that landlords with a portfolio containing Victorian and Edwardian properties, which form approximately 10 per cent of the whole rental market, should act now to claim as much financial assistance as possible to ensure their properties comply ahead of the new legislation.
Landlords should note that the application process for claiming can be complicated, and plenty of time should be allowed to make a successful claim while the scheme is still available.
Commentators and property experts across the UK have condemned the timing of the tax break’s expiry as it will have a major financial impact on landlords just before they will be legally obliged to improve their rental properties.
David Weatherall, of the Energy Saving Trust, said: “We should not let this policy expire and die just when it could be really useful.”
There are widespread fears that the Green Deal – another Government scheme – will also be abolished under a possible Labour Government, meaning that landlords would be expected to pay for all the improvements themselves, without any form of assistance.
Latest posts by Nigel Rowley (see all)
- Fears that families are not taking IHT seriously - September 22, 2017
- UK commercial property market thriving in many regions, figures suggest - September 18, 2017
- Rise in number of charitable donations left in Wills - September 15, 2017