Many private landlords 'don't know about tax relief scheme'

Date: 14th July 2008

Many small-scale landlords in the UK are unaware of a government scheme that could help them save tax, a new report has warned.

Research from buy-to-let mortgage company Paragon showed that the vast majority of landlords in the UK had never heard of the Landlord Energy Saving Allowance (LESA), despite the fact that it could help them save tax.

The LESA is an allowance that lets landlords claim up to £1,500 on their tax return against the cost of buying and installing energy-saving items.

However, only 14 per cent of the landlords questioned by the lender said they were aware of the tax break.

John Heron, Paragon Mortgages' managing director, commented: "The government has targeted domestic energy use as a way of reducing carbon emissions and landlords have to play their part."

Recently, the Guardian suggested that it might be a good idea for landlords to consult with an accountant about their tax liability.

The paper explained that the taxation issues for landlords were relatively complex, with rules about what can and cannot by written off when completing a tax return.