Pay Less Tax

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27th October 2011

Everyone wants to pay less tax but there are ways that landlords can claim a larger tax allowance. The governments desire to force all landlords to implement energy saving recommendations have been put on hold (temporarily) but many landlords are not aware of the tax allowances they can claim for certain works. Everyone knows it is only maintenance that is tax deductible, improvements to the property are not. However, the Landlords Energy Saving Allowance does give landlords the opportunity to claim up to £1500 against their income tax every year. The qualifying works include cavity wall insulation and loft insulation, but time is of the essence, the allowance is due to be withdrawn in 2015. Director, David Nicholson said “The government has already expressed its wish to pass legislation that will force landlords to improve the energy performance of their portfolio. With mortgages at record lows and a time limit on the allowance now is the time to evaluate your property and consider acting upon the recommendations listed in the energy performance certificate.”

We would always recommend that landlords seek the assistance of a qualified tax advisor to help them claim the allowances they are entitled to. For this piece we consulted Paul Johnston of Bourne Accountancy, you can access his dedicated landlords tax web page by clicking here.