Grants and Support

Energy Efficiency Commitment

Energy companies are currently being required by the government to fund energy improvements in domestic homes. They are obliged under the energy efficiency commitment (EEC) to provide grants for homeowners to install cavity wall and loft insulation. Landlords can claim these grants too for all or any of their properties . These grants are constantly changing so for up to date advice on the latest offers call Your Energy Efficiency Advice Centre on 0800 512 012 .

Fuel Poverty Grants - Warm Front

Warm Front is a government scheme set up to tackle the issue of fuel poverty by providing financial assistance for people on certain benefits to install insulation and heating systems. The grants are available to tenants of private sector housing as well as those who own their own home . If one of your tenants is on any of a range of benefits, they can apply direct to Warm Front for assistance (telephone 0800 316 2814 ). Warm Front will then contact the Landlord for authority to undertake the work at no cost to the landlord or the tenant. With the installation of a new heating system, and/or loft and cavity wall insulation there is sometimes a surplus to pay - it is best to agree with the tenant whether landlord or tenant will be responsible for this surcharge prior to the work being carried out.

Alongside these grants the Government has also introduced some tax incentives to encourage private landlords to install energy efficiency measures in their properties:- these are the Landlords Energy Saving Allowance (LESA, aimed at small landlords) and the Enhances Capital Allowance (ECA, aimed at businesses and large private landlords).

Landlords Energy Saving Allowance (LESA)

This allowance can be claimed by all private landlords that pay income tax, usually individual and smaller landlords. The LESA means that landlords can claim a deduction for income tax purposes (up to a maximum of £1,500) against their rental profit when they install cavity wall, solid wall or loft insulation, draught proofing or insulation for hot water systems in any property they let. This is in addition to the deduction that the Inland Revenue allows for wear and tear of furniture, fixtures and fittings (currently 10%).

Enhanced Capital Allowance(ECA)

This allowance can be claimed by landlords that pay corporation tax, larger landlords and businesses. This provides the landlord with the opportunity to claim 100% of the tax back on any energy saving technology that they buy e.g. if a boiler were bought at £100 and assuming a tax rate of 30% then £30 could be claimed back in the first year.

For a list of energy technologies that are eligible for this tax, see the: Enhanced Capital Allowance Site

The ECA scheme was set up to encourage businesses to reduce carbon emissions which contribute to climate change. The ECA provides up front tax relief, allowing businesses to claim 100% first year capital allowances against their taxable profits. This can deliver a cash flow boost and shorten the payback period on investments.

Further Information and Useful Contacts

• Inland Revenue website (for information about LESA) Tel: 020 7147 2541

• Southern Private Landlords Association website

• Your Energy Efficiency Advice Centre Tel: 0800 512 012

• HMRC Self-Assessment Help-line Tel: 0845 900 0444

• Oxford City council Grants

PLEASE NOTE: At time of publication this information was correct but may have changed or been discarded since. Lee and Lindars do not take any responsibility for mis guided information upon this page.

Back