Allow tax relief for landlords who improve EPC ratings says firm

Allow tax relief for landlords who improve EPC ratings says firm

9:24 AM, 15th February 2024, About 2 months ago 6

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One firm is calling on the government to allow tax relief for landlords who improve the energy efficiency of their rental stock.

Tax accountants Blick Rothenberg says landlords should claim income tax and or corporate tax relief if they improve EPC ratings on their properties.

The firm is urging the Chancellor Jeremy Hunt to put this measure in place in next month’s budget.

Allow landlords to get income tax relief

Partner and head of property and construction at Blick Rothenberg, Heather Powell, said: “Whilst the government has been encouraging buy-to-let landlords to improve the energy efficiency of their properties, it’s about to turn on the imposition of higher standards from April 2025 and has stopped all requirements for landlords to undertake these works, which are essential if the UK is going to reach Carbon Zero by 2050.

“If the government is serious about improving the efficiency of rental homes (and helping people deal with the cost-of-living crisis), it should allow buy-to-let landlords to get income tax relief when making their annual tax return declarations (or corporate tax relief if the properties are owned through a limited company).”

“This step would ensure that the landlords get tax relief on a timely basis and would help landlords fund the investment in improving Britain’s stock of rented accommodation.”

No interest improving a property’s EPC rating

The firm says without financial incentives or legal requirements landlords will have no interest in improving a property’s EPC rating.

The firm says to ensure that any tax relief provided in this regard is ‘robust’ from a systems and value-for-money perspective, the government could ensure that landlords have to meet all the following requirements:

  • They obtain an initial EPC rating showing the energy efficiency status of the property ‘today’ with a list of recommended improvements.
  • They undertake the work required (and have receipts etc. in this regard); and
  • Then get an updated EPC rating showing the impact of the relevant improvements.

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Cider Drinker

9:43 AM, 15th February 2024, About 2 months ago

It’s a great idea but we would need a better system of measurement first.

I have seen houses achieve a C rating when the house is clearly no better than an F rated property in the same street.

Judith Wordsworth

10:22 AM, 15th February 2024, About 2 months ago

Allow tax relief for those landlords who rent to those on benefits would be more appropriate.

Might even persuade PRS landlords not to leave the sector.

Chris Rattew

14:41 PM, 15th February 2024, About 2 months ago

I have proposed before that businesses should be able to deduct all expenditure for tax purposes. This avoids all the bureaucracy. If this is done, the government would get the tax later as capital gains tax, which would balance out the income tax lost. I have also noted that most of the tax we pay is VAT, so energy-saving products could have zero VAT.

Michael Booth

9:13 AM, 16th February 2024, About 2 months ago

I would have thought a improvement to the property would be tax deductible, but no according to hmrc , my answer is well why improve it.

Neil Robb

18:57 PM, 16th February 2024, About 2 months ago

Complete nonsense . When they can change how EPC rating is done.

In Scotland the greens have said they will change EPC C ratings to lower if the have gas or oil boiler.

Only old outdated storage heater get recognised in EPC.

If it really is about global warming why only insist rentals at 14% but ignore every other property owner.


18:23 PM, 18th February 2024, About 2 months ago

EPC improvement needs to be introduce in stages - first of all decide whether its energy efficiency (aka gas heating) or net zero (aka electric heating) that the government is aiming for. Get the EPC data values correct and intoduce the upgraded in stages - eg EPC D within 5 years and EPC C within 10 years. That will allow landlords to either upgrade or sell (and buy more efficient properties).

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