Chapter PIM7070

CourtHM Revenue & Customs
Record NumberPIM7070
Published date10 April 2016

The Landlord’s Energy Saving Allowance (LESA) was introduced to encourage landlords to improve the energy efficiency of let residential properties. It is an allowance for the cost of acquiring and installing certain energy-saving items. Expenditure on these items cannot normally be deducted when calculating taxable profits and is not eligible for capital allowances under CAA 2001.

The allowance is available on qualifying expenditure on specified energy saving items incurred before 6 April 2015.

Income Tax

The legislation for landlords within the charge to income tax is in ITTOIA 2005, s.312-314 and the Energy-Saving Items Regulations 2007 (S.I. 2007/831).

LESA can be claimed on the following energy-saving items in let residential property, provided the expenditure is incurred on or after the dates specified below and before 6 April 2015:

Expenditure Date available
Loft insulation From 6 April 2004
Cavity wall insulation From 6 April 2004
Solid wall insulation From 7 April 2005
Draught proofing From 6 April 2006
Hot water system insulation From 6 April 2006
Floor insulation From 6 April 2007

From 6 April 2004 to 5 April 2007 the maximum allowance was £1,500 per building per year.

From 6 April 2007 the maximum allowance is £1,500 per dwelling house. This means that where a single building contains two or more dwellings, the landlord can claim up to £1,500 on each dwelling.

Corporation Tax

The legislation for landlords within the charge to Corporation Tax is in ICTA 1988, s.31ZA to 31ZC, and the Energy-Saving Items (Corporation Tax) Regulations 2008 (S.I. 2008/1520).

LESA can be claimed on the energy-saving items listed above, provided the expenditure was incurred on or after 8 July 2008 and before 1 April 2015.The maximum allowance is £1,500 per dwelling house.


Expenditure may need to be apportioned. For example, where a landlord installs energy- saving items in:

  • A building that only partly comprises let residential property

  • A building containing more than one dwelling house

  • A property that is let by more than one landlord

In these circumstances a just and reasonable apportionment of the...

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