Landlords could avoid up to £600 of tax by taking advantage of ‘green' tax breaks when upgrading their properties, according to the National Landlords Association (NLA).
The Landlord’s Energy Saving Allowance (LESA) enabled landlords to claim against a maximum of £1,500 per property for the costs of making the property more environmentally friendly.
The tax break can be claimed on tax returns for installing draught proofing, loft insulation, floor insulation, cavity wall insulation, solid wall insulation and insulation for hot water systems.
If a landlord were to claim the full amount then they could save £300 for basic rate taxpayers and £600 for higher rate taxpayers, according to the NLA.
David Salusbury, chairman of the NLA, comments: “LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements.
“As well as contributing to the overall efforts by society to combat climate change, landlords may see an increase in the value of their investment as a result of energy efficiency improvements.
“We are pleased that the Government has chosen to offer incentives to landlords instead of regulation and would urge landlords to use the tax break or, perhaps, risk losing it in the future.”
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