Statutory Instrument SI 1520-Landlords Energy Saving Allowance (LESA) now available for residential landlords within the charge to corporation tax.

Finance Act 2004 introduced the Landlords Energy Saving Allowance (LESA), which allowed residential landlords within the charge to income tax to deduct the cost of loft and cavity wall insulation against their taxable profits. The LESA has subsequently been extended to allow deductions for expenditure on solid wall and hot water system insulation, draught proofing and floor insulation.

Following State aid approval, these Regulations allow residential property businesses within the charge to corporation tax to take advantage of the LESA. It will be available for all relevant expenditure incurred on or after 8 July 2008.

For further information see http://www.hmrc.gov.uk/si/2008-1520-em.pdf