Landlords missing out on extra cash for green improvements
Private and corporate landlords are not claiming back tax on energy efficient improvements they have made to their rental properties, according to a recent HMRC press release.
As a result of this hundreds and thousands of pounds are going unclaimed each year.
Landlords can claim back the costs of buying and installing energy saving items in the properties they rent out against their taxable profits.
Richard Mannion, National Tax director at Smith & Williamson accountancy and fainiancial services group said “There has been a low level of claims submitted under the Landlords Energy Saving Allowance (LESA) despite the availability of allowance being extended from private landlords to corporate landlords in summer 2008.
Making energy efficient improvements to a property will reduce the cost of energy bills as well as maximise the tax savings under LESA.
It’s a win-win situation for landlords. In addition to saving themselves money, they’ll save their tenants money and do something good for the environment.”
LESA is a tax allowance not a grant. However, landlords can’t claim if they are already claiming an allowance under the Rent-A-Room scheme, or if they have a property rented out as furnished holiday accommodation, or if the energy saving item is installed in the course of construction.
Landlords can claim LESA on expenditure incurred up to 1st 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).