The Landlord’s Energy Saving Allowance (LESA) is a tax allowance which lets landlords claim on their tax return against the cost of buying and installing energy saving items. Tax relief is for a maximum of £1,500 per property.
What measures are eligible?
The landlord can claim if he/she has installed the following items:
- draught proofing
- loft insulation
- floor insulation
- cavity wall insulation
- solid wall insulation
- insulation for hot water systems
How much can I save?
Here’s an example of how it works. If you’ve installed insulation at a cost of £1,500:
Annual taxable income = £20,000
LESA (cost of insulation) = -£1,500
Total taxable profit = £18,500
Saving at 22% tax = £330
Saving at 40% tax = £60
How does the landlord claim?
It’s simple to do. When filling in the Land and Property supplementary pages of your tax return, you should include the cost of these items in box 5.36C. Guidance on LESA can be found in the supplementary notes for the Land and Property pages of your main self-assessment return.
All installation work needs to be completed by the end of March in order to claim it for that tax year.
Where can I get more information?
To find out more about LESA, the landlord can talk to his /heraccountant or tax advisor, or visit www.hmrc.gov.uk. The Energy Saving Trust can provide you with a personalised Home Energy Check report on each of your properties for free. Simply complete the questionnaire today and you should have your report very soon. The questionnaire is available at:
www.energysavingtrust.org.uk/proxy/view/full/165/homeenergycheck
For more information or advice, please call the Energy Saving Trust on 0800 512 012.
No comments:
Post a Comment