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Angela Eagle announces extension of energy saving allowance to corporate landlords
Exchequer Secretary to the Treasury Angela Eagle, MP today announced that the Government's plans to extend the Landlord's Energy Saving Allowance (LESA) to corporate landlords have been given formal state aid approval by the European Commission.
The scheme, which provides incentives for landlords to improve the energy efficiency of their properties, is expected to save at least 150,000 tonnes of CO2 in 2010/11. From 8 July 2008 private landlords will be able to claim up to £1,500 a year per property against the cost of purchasing and installing energy-saving items such as floor insulation and draught proofing.
Welcoming the extension of LESA, Angela Eagle said:
"Landlords and tenants both gain from the Landlord Energy Saving Allowance. It provides an incentive for landlords to invest in making their properties more energy efficient, and for their tenants it means lower energy bills, which will be particularly welcomed in the context of the current increasing domestic fuel costs.
"It is estimated that over a quarter of the UK's carbon emissions come from residential properties, and the LESA is one of the measures the Government has introduced to support greater energy efficiency in the household sector. Since its introduction in 2004, the LESA has made a significant contribution to carbon savings, and this extension should save at least an additional 150,000 tonnes of CO2 once the change is implemented, demonstrating the environmental benefit of investing in energy efficiency."
Notes for Editors
1. Over a quarter of the UK's carbon emissions come from residential properties. In response, the Government has introduced a range of initiatives to encourage household energy efficiency over recent years. There is a particular need for action targeted at the residential rented sector, since properties typically produce more carbon per year than other homes.
2. The LESA allows the costs of acquiring and installing energy-saving items in residential rented properties to be deducted from profits. The allowance can be claimed for all expenditure on loft, solid wall, cavity wall and floor insulation, draught proofing and hot water system insulation up to a maximum each year of £1,500 per home.
3. The LESA was introduced in the Finance Act 2004 but was restricted to residential landlords. The extension to include corporate landlords was announced in the 2006 Pre Budget Report and legislated in the 2007 Finance Act. As the extension constitutes a state aid, it could only be activated once formally approved by the European Commission. The allowance will be available on all expenditure incurred on or after 8 July 2008.
4. For further information on how landlords can claim the allowance visit: http://www.hmrc.gov.uk/manuals/pimmanual/PIM2015.htm Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk
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