You can reduce your tax bill by up to £1,500 a year with the Landlord’s Energy Saving Allowance.
What you can claim
You can claim Landlord’s Energy Saving Allowance for the costs of buying and installing the following energy-saving products for properties you rent out:
- cavity wall and loft insulation
- solid wall insulation
- hot water system insulation
- floor insulation
Owning property abroad
You can claim Landlord’s Energy Saving Allowance for properties you rent out abroad, as long as you pay UK tax on profits from those properties.
Owning more than one property
You can claim a maximum allowance of £1,500 for each house, flat or bedsit you rent out. For example, if you rent out a building that contains 4 flats, you can claim up to £1,500 for each flat.
Owning a property with others
If you own the property with others, you can claim a share of the allowance in one of two ways:
- based on the amount of the property you own (eg if you own half of the property you can claim up to £750)
- based on the amount of money you spent on the improvements (eg if you covered half of the costs, you can claim up to £750)
Owners can claim a maximum £1,500 in total for each property owned.
Installing energy-saving items yourself
If you install the energy-saving items yourself, you can claim Landlord’s Energy Saving Allowance for the costs of buying them, but not for installing them.
What you can’t claim
You can’t claim Landlord’s Energy Saving Allowance on a property if:
- you’re claiming an allowance under the ‘Rent a Room’ scheme
- you’re renting out the property as furnished holiday accommodation
How to apply
You claim the allowance when filling in your tax return:
- when you fill in your Self Assessment tax return - if you rent out your property as an individual
- under ‘allowable business expenses’ on your Company Tax Return form - if you rent out your property as a business