Organisation Calls For Costs Of Energy Improvements To Be Tax Deductible

Date Published 04 April 2018

A private rented sector organisation is adamant that any costs undertaken by landlords for improvements to their properties to meet the new energy standards must be tax deductible.

The organisation has argued that landlords having to make these improvements out of their own pockets are being treated extremely unjustly.

Any new or renewed tenancies for rented homes from April 1st must have an energy performance of at least an E, and from April 2020 it will become mandatory for all rented 'homes'.

Landlords who cannot afford to carry out the necessary improvements have been told by the government that they are able to register this. It is also suggesting of introducing a £2,500 cap on how much landlords have to pay towards the costs of energy performance improvements.

The organisation argues that the energy improvement costs should be tax deductible as costs of other repairs to rental properties are. It is calling for the government to offer financial assistance to landlords when making these improvements as it places so much importance on the issue.

The organisation believes that the change to the policy would persuade landlords to carry out the efficiency improvements before they would have to, as it is in everybody's interests. They back up their argument by predicting that 61% of landlords would take up the work if it was to become tax deductible, especially those who own properties of 'historic' heritage.

A spokesperson for the organisation commented: "Whilst considerable improvements have been made over the last decade, private rented homes currently falling below the new energy standards are some of the hardest to treat properties of the country's entire housing stock. Given the importance the Government attaches to improving the energy efficiency of rented homes there is a strong case for giving work to upgrade the same tax treatment as for repairs."