Landlords Insurance – Energy Saving Allowance

Landlords insurance is a must for all those that rent out their properties, but there are a number of ways that relief can be claimed.

The Government has a scheme called the Landlord’s Energy Saving Allowance and this means that if you make acceptable energy saving improvements to your property, it could reduce the amount of tax paid. Landlords insurance helps guard against problems with a tenancy, the Energy Saving Allowance provides the chance to get some money back.

You have to be eligible of course and this comes down to whether the landlord is renting out residential property, and whether they pay income tax on the profits from their rental properties, or whether they have a company and pay corporation tax on the profits from letting.

You are not eligible if you claim an allowance within the scheme called Rent a Room, or if the property is furnished holiday accommodation.

Landlords should remember that the Energy Saving Allowance is not a cash payment, but is a fixed amount (currently £1,500), which can be claimed against tax. And you claim the Allowance for what you have spent on the property, which can include floor insulation, solid wall insulation, draught proofing and loft insulation.

The allowance, which was first introduced in 2004, will end in 2015.

But at least for all landlords paying out for such items as landlords insurance, it’s good to know that some monies can be clawed back through the tax system, although don’t hang about, it won’t be there for very long.