08 May 2008 / by Rachael Stiles
Landlords are being encouraged to install energy saving devices as they can claim on their tax return against the cost of installing them.
Leading UK representative body for landlords, the National Landlord’s Association (NLA), is urging private residential landlords to take advantage of the opportunity to get a tax break by installing items such as draught-proofing, loft insulation, floor insulation, cavity wall insulation, solid wall insulation and insulation for hot water systems.
Landlords are able to claim a maximum of £1,500 per property against the cost of installing such energy saving measures, which will improve the efficiency of the property and also lower fuel bills for the tenants.
If a landlord installs insulation costing £1,500, higher rate income tax payers could save as much as £600 and basic rate income tax payers could make a saving of up to £300. With mortgage rates on the rise, this could come as welcome relief for ‘green’ landlords.
From October 1, 2008, all rental properties in England and Wales with a new tenancy will be required to possess an Energy Performance Certificate (EPC), which will inform prospective tenants of the property’s energy efficiency. This may encourage potential tenants to opt for a property that does not have such high energy costs.
“The NLA encourages its members to invest in maintaining and improving the quality of their properties.” said David Salusbury, chairman of the NLA. “LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements.
“As well as contributing to the overall efforts by society to combat climate change, landlords may see an increase in the value of their investment as a result of energy efficiency improvements. We are pleased that the Government has chosen to offer incentives to landlords instead of regulation and would urge landlords to use the tax break or, perhaps, risk losing it in the future.”
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