Time is running out on landlord tax breaks
Rental reforms mean that landlords have until April 2018 to make home improvements before new energy efficiency rules come into force which could cost thousands of pounds, or even more on older properties. However tax relief and the Green Deal can help to fund these improvements – if you act quickly!
There are just a few weeks left to claim £1,500 from landlord tax breaks through your self-assessment annual tax return. Landlords can deduct the costs of a new boiler, or insulation from annual taxable income on their self-assessment form.
Further cash is available through the Green Deal cashback. £5,600 is available under this scheme on a first come, first served basis. The next release of funds is expected to take place in April. To take part in this scheme landlords must book a Green Deal assessment. The report from the assessment gives details of the improvements needed at the property and can be used to apply for vouchers. Then landlords either pay for the work and reclaim the cash later or pay with vouchers – depending on the landlord’s payment agreement with the installer.
If more funding is required then landlords can also apply through the Energy Companies Obligation (ECO) but again a quick application is essential – ECO runs out on March 31 and although it’s expected that the ECO will continue to operate it is likely to be with drastically reduced funding!
Lynne McCaffrey, Head of Property at Goldsmith Williams Solicitors, comments:
“Each of these can help significantly with the costs of the home improvements landlords need to make so that their properties meet the energy efficiency rules. Landlord responsibilities also include legal issues faced by landlords and our website includes lots of helpful information for landlords to refer to.”
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Content correct at time of publication