LESA (Landlords)

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If you are a landlord and make energy saving improvements to your property, you could reduce the tax you pay. You can do this by claiming the Landlord’s Energy Saving Allowance.

The Basics

You can claim LESA if you are a landlord renting out residential property and are either:

  • an individual landlord – someone who pays income tax on profits from letting
  • a corporate landlord – someone whose rental business is registered as a company and you pay corporation tax on profits from letting

However, you can’t claim if you are a landlord:

  • claiming an allowance under the ‘Rent a Room’ scheme
  • of a property rented out as furnished holiday accommodation

LESA is a tax allowance (not a cash payment) that allows you to claim up to £1,500 against tax every year. This allowance can be claimed for properties you rent out in the UK and abroad. You can claim LESA for the costs of buying and installing certain energy saving products for properties you rent out, but only for what you actually spend.

You can claim LESA for what you have spent on:

  • cavity wall and loft insulation, after 6 April 2004
  • solid wall insulation, after 7 April 2005
  • draught proofing and hot water system insulation, after 6 April 2006
  • floor insulation, after 6 April 2007

You can claim LESA up to 1 April 2015, when the availability of this allowance will end.

You claim the allowance when filling in your tax return. Further details can be found on the HMRC website. To see what expenses are allowed you can get more information about the scheme on the DirectGov website.

FAQs

Who can claim LESA?

You can claim LESA if you are a landlord renting out residential property and are either:

  • an individual landlord – someone who pays income tax on profits from letting
  • a corporate landlord – someone whose rental business is registered as a company and you pay corporation tax on profits from letting

However, you can’t claim if you are a landlord:

  • claiming an allowance under the ‘Rent a Room’ schemev
  • of a property rented out as furnished holiday accommodation
  • The Rent a Room scheme (money, tax and benefits section)

 

How much is LESA?

LESA is a tax allowance (not a cash payment) that allows you to claim up to £1,500 against tax every year.

What does LESA cover?

This allowance can be claimed for properties you rent out in the UK and abroad. You can claim LESA for the costs of buying and installing certain energy saving products for properties you rent out, but only for what you actually spend. You can claim LESA for what you have spent on:

  • cavity wall and loft insulation, after 6 April 2004
  • solid wall insulation, after 7 April 2005
  • draught proofing and hot water system insulation, after 6 April 2006
  • floor insulation, after 6 April 2007

What measures are eligible?

You can claim if you’ve installed the following items:
  • draught proofing
  • loft insulation
  • floor insulation
  • cavity wall insulation
  • solid wall insulation
  • insulation for hot water systems