Landlords Energy Saving Allowance
In August 2004, the Government intruduced "The Energy Saving Items (Deduction and Expenditure etc) Regulations 2004" hitherto called the Landlord's Energy Saving Allowance (LESA). The Scheme was extended in March 2005.
LESA is available to all landlords who pay Income Tax and let residential property to tenants.
A deduction of up to the maximum £1,500 for Income Tax purposes is applicable for each building when the following measures are installed;
- Cavity Wall Insulation
- Loft Insulation
- Solid Wall Insulation
N.B. All expenditure on cavity wall and loft insulation after 6 April 2004 and solid wall insulation after 7 April 2005 can be claimed. Any expenditure incurred for these works after 5 April 2009 can not be claimed.
Following the 2006 Budget, from 6 April 2006 the LESA has been extended to enable landlords to also claim the allowance for expenditure from installing draught-proofing and for insulating hot water systems in dwelling houses which they let.
How do I claim my money?
Guidance on the L.E.S.A can be found in the notes for the Land and Property pages of your main self-assessment tax return. This information can also be found at www.hmrc.gov.uk/sa/forms/net-04-05.htm
Why should I insulate my property?
35% of heat loss is lost through the walls and 25% is lost through the roof. The remaining 40% is lost through doors, windows, the floor and draughts.
Insulating your property will help reduce your tenant’s energy consumption and lower their fuel bills as they will not need to spend as much on fuel.
A fully insulated property will conserve energy and reduce carbon dioxide emissions which contribute towards global warming and climate change.
Insulation can help alleviate damp conditions, making it a healthier place for your tenants to live in and reduce unnecessary maintenance costs associated with damp and condensation.
You will be able to reclaim the money you spend on improving the quality of your property.
Grants
If your tenants receive certain benefits or are on low incomes, they can apply for a Warm Front grant from the Government to fund the full cost of the following works;
· Cavity wall insulation,
· Loft insulation,
· Draughtproofing and
· Hot water tank insulation
Heating improvements and repairs can also be covered under this grant.
For more information, please call the Warm Front Team on 0800 316 6011.
Energy saving tips for you and your tenant
Cavity Wall Insulation; insulating your cavity walls will reduce heat loss by 35% and save up to £100.00 on fuel bills per year.
Loft Insulation; insulating your loft will reduce heat loss by 25% and save up to £100.00 on fuel bills per year.
Heating; turning the thermostat down by 1 degree centigrade will reduce yearly energy consumption by 10%.
Bathing; taking a shower instead of a bath will reduce hot water consumption by 80%.
Hot Water Tank; if your tank is not already insulated, fit a jacket around it to keep the heat in the tank.
Laundry; wash your clothes at 40 degrees centigrade, saving 75% of the cost compared to the hottest cycle.
Low Energy Lightbulbs; these bulbs use 80% less energy than a standard bulbs and will save up to £50.00 on electricity bills over the lifetime of the bulbs.
Doors and Windows; Draught proofing around doors and windows will help eliminate draughts and reduce heat loss in the home by 15%.
Refrigerators and freezers; locate them in a cool place in the kitchen and defrost them regularly to make sure they work as efficiently as possible.
Kettles; when boiling the kettle for a cup of tea, only fill it with as much water as you need but please ensure that the element is fully covered.
Cooking; use a microwave oven to cook small items as it will use 75% less energy than a conventional oven. Always use a pan which is the same size as the hot plate and keep a lid on the pan to quicken cooking time.
Energy Efficiency Labelling; when purchasing new “white” goods, always buy the most energy efficient product you can.
Energy Efficiency Advice
The Energy Saving Trust (EST) is a non-profit organisation funded by the Government and the private sector. It can offer you free advice on energy efficiency and renewable energy.
For more information, please call 0800 512015 or visit their website www.est.org.uk
Further information is available from HM Revenue and Customs.
|
