Tax Handouts for Landlords
Don't forget the Landlords’ Energy Savings Allowance (LESA).
Since April 2004 this has allowed landlords who are paying income tax with the ability to get relief at their highest marginal rate of tax for up to £1,500 for loft and cavity wall insulation.
In the 2005 budget, it was extended to include solid wall insulation, and then later to include draught proofing and the insulation of hot water systems.
The widening of the scheme is good but it is all a bit piecemeal though - and many landlords do not know about the LESA incentives.
What would really help would be for landlords to be ordinarily treated under the tax system as businesses and not as individuals. (At present the vast majority of private landlords are treated as individuals for tax purposes)
If the Revenue allowed landlords to be treated as businesses they could get capital allowances on capital invesments to, for example, improve energy efficiency.
Since April 2004 this has allowed landlords who are paying income tax with the ability to get relief at their highest marginal rate of tax for up to £1,500 for loft and cavity wall insulation.
In the 2005 budget, it was extended to include solid wall insulation, and then later to include draught proofing and the insulation of hot water systems.
The widening of the scheme is good but it is all a bit piecemeal though - and many landlords do not know about the LESA incentives.
What would really help would be for landlords to be ordinarily treated under the tax system as businesses and not as individuals. (At present the vast majority of private landlords are treated as individuals for tax purposes)
If the Revenue allowed landlords to be treated as businesses they could get capital allowances on capital invesments to, for example, improve energy efficiency.
This entry was posted by lettingfocus, on
Saturday, December 30, 2006.
