Landlord’s Energy Saving Allowance

Landlord tax advisors RITA4Rent blog today on the Landlord’s Energy Saving Allowance.  This is video tax tip number 3 in our series, and please see below for the video. Landlords Energy Savings Allowance (LESA) is an invaluable tax saving which can be claimed for by landlords against their rental income, allowing an offset of up to £1500.  This £1,500 allowance is per property, and covers the purchase and installation of numerous energy-saving products.  Typical examples being draught proofing, hot water systems and floor insulation to name but a few.

You may even claim this allowance if the property is overseas, as long as tax is paid over here on the arising profits.

Do bear in mind that if you own the property with, say, your husband or wife, you may only claim half of the allowance, as your spouse would claim the other half.

The exception to the rule is that the Landlords Energy Savings Allowance (LESA) is not applicable to those letting furnished holiday lets (FHL) nor those benefiting from the rent-a-room scheme.

The amount claimed would be entered in box 35 of the UK Property Pages.

Please note however that the Landlords Energy Savings Allowance (LESA) is due to end on 1 April 2015, so do make sure the expenditure is incurred before this date!

See below video for further details, and please do not hesitate to contact us for tax advice and further information.

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