If you own property that you rent to tenants, you’ll already know that you are now required to have an Energy Performance Certificate. This involves an inspection by an independent assessor who will report on the estimated energy rating of your property.
Your property will be rated on the efficiency on which it uses and maintains energy. The bands range from A to G. A home rated as band A is deemed the most efficient and should have the lowest energy bills. A home in band G will be the least efficient and have the highest fuel bills.
Owning and renting out an energy efficient property not only benefits the environment by reducing carbon emissions but it can also reduce fuel bills for you and your tenants. This can make your property more desirable to prospective tenants as they will have noticeably lower fuel bills and a ‘greener’ home to live in.
They should also have a warmer home, which is less likely to suffer from damp, condensation or mould if it is properly insulated. On the whole, both parties save money and feel good by contributing towards protecting the environment.
There is now an allowance that could see you paying less tax as a landlord if you make certain energy saving improvements to your property. The scheme is aimed at reducing global carbon emissions and is aimed at individual or corporate landlords, who can claim if they pay tax on rental profits received.
The Landlords Energy Savings Allowance is a tax allowance and not a cash payment. Landlords can claim for money they have spent on improving the energy efficiency of their property, such as installing cavity wall insulation, loft insulation and solid wall insulation.Also, floor insulation, draught insulation and hot water system insulation.
Individual landlords can fill in online self assessments forms to claim the allowance. Corporate landlords can claim in their corporation tax allowance.
Your local tax office or local council can offer you advice and help in claiming this allowance. Contact them for more details.
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