Landlord's Energy Saving Allowance (LESA)

Claiming your LESA

Who can claim LESA?

You will be eligible to claim LESA if you are a landlord renting out a residential property. You can claim LESA if you are an individual landlord (you pay income tax from the rent that you earn from the property) or a corporate landlord (you have a rental business which is registered as a company and you pay corporation tax on the profits you receive from letting out properties). You will be unable to claim LESA if you are using the Rent a Room scheme or your property is set out for a holiday let.

LESA - how much may you get if your application is successful?

LESA is a tax allowance which enables you to claim back up to £1,500 a year from the costs of making your property more energy efficient. This covers:

• cavity wall and loft insulation which was installed after the 6 April 2004
• solid wall insulation which was installed after the 7 April 2005
• draught proofing and hot water insulation after the 6 April 2006
• floor insulation after 6 April 2007.

This scheme has been available for individual landlords since 6 April 2004 and for corporate landlords since 8 July 2008. The scheme will end in 2015.

Applying for LESA

You should claim LESA when you are filling in your tax return.

Individual Landlords

If you are an individual landlord you will need to apply for the allowance when you fill in your self assessment tax return. You will need to fill in the section marked ‘Landlord’s Energy Savings Allowance’ on the UK property page if your property is in the UK or on the ‘Income from land and property abroad’ page if your property is abroad. You will need to include the costs of buying and installing the energy saving products. You should also deduct the amount of LESA you are claiming from your overall taxable income from the property, as this will reduce the amount of tax you have to pay.

Corporate Landlords

If you are a corporate landlord you will instead need to apply under the ‘allowable business expenses’ section on your tax return.

Claiming LESA on other energy saving products

You can only claim LESA on the items listed in the above section. However, you may be able to claim tax back on other products which grant an improvement to the energy efficiency of your property, such as double glazing.

Claiming LESA on more than one property and shared ownership

As of 6 April 2007, it is possible for you to claim LESA for each property that you let. If you share the ownership of a property you are renting out with another person, it is permissible for you to share the allowance.

Saving energy and money in your property

Using energy efficient products can save you money and can help reduce your carbon emissions. You should get in contact with your local council to see if there are any other grants that you may be eligible for making your property more energy efficient.

Share your experiences

Please note: The views expressed in community areas of this site do not necessarily reflect or represent the views of Law on the Web, its owners, its staff or contributors.