Landlords call for energy improvements to be made tax-deductible

The Residential Landlords Association is calling on the Chancellor to make all energy upgrades to rental property a tax-deductible expense.

Since April, all new or renewed private sector tenancies require properties to have at least an ‘E’ rating on their Energy Performance Certificate.

From 2020 that will apply to all private rented homes, with the target likely to be raised to a minimum C rating by 2030.

It says that if all energy improvements could be considered a tax-deductible repair, this would “encourage a culture of continuous improvements to property rather than simply meeting set targets and leaving them there”.

RLA policy director David Smith said: “Energy efficient homes are good for tenants and good for landlords.

“That is why we need to use taxation far better than we do at present to encourage a continuous culture of energy improvements.”

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3 Comments

  1. Will

    Well said David Smith but expecting common sense from any Government is wishful thinking.

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  2. eltell

    Why should renting a property out for profit be any different than running a business for profit?  It is eminently sensible for the government  to allow expenditure that enhances the product to be set of against tax.  Sorry, I used goverment & sensible at the same time!

     

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  3. GeorgeHammond78

    Am I missing something? Replacing knackered heating for new or decent windows for old is already tax deductible in full. Its only putting a brand new windmill on your roof which would be a capital – non deductible – cost but even then it’s cost can be offset against CGT at later date.

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