REV BN 37: Landlord’s Energy Saving Allowance

Who is likely to be affected?

1. Individual landlords (and other landlords who pay income tax) who let residential property.

General description of the measure

2. The scope of the Landlord’s Energy Saving Allowance (LESA) will be extended to include solid wall insulation.

Operative date

3. 7 April 2005.

Current law and proposed revisions

4. Under section 31A, Income and Corporation Taxes Act 1988 (if enacted, clause 312, Income Tax (Trading and Other Income) (ITTOI) Bill from 6 April 2005), landlords who pay income tax may claim a deduction, the LESA, against profits for expenditure to install loft insulation or cavity wall insulation in dwelling houses which they let. The maximum amount which may be claimed is limited to £1,500 per
building.

5. Regulations will be made under clause 312(5)(c) ITTOI Bill to enable landlords also to claim the allowance for expenditure to install solid wall insulation in dwelling houses which they let.

Further advice

6. If you have any questions about this change, please contact your local Inland Revenue Enquiry centre: see the Telephone Directory for details. Information about Budget measures is available on the Inland Revenue website

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