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3 years ago | 22 comments
Liberal Democrats demand tax perks for EPC upgrades
12:03 AM, 13th November 2023, 2 years ago
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Liberal Democrats are pushing the government for more EPC reforms in the PRS.
The party proposes that all landlords should be allowed to offset their spending on insulation and energy-saving improvements against their income tax.
The party has previously criticised the government for scrapping EPC C targets by 2025 calling it “unforgivable”.
Incentives for landlords
Liberal Democrat MP, Wera Hobhouse, told a Commons debate that green targets need to be set for landlords.
She said: “We Liberal Democrats propose that all landlords should be allowed to offset their spending on insulation and energy-saving improvements against their income tax.
“Only through well-targeted incentives for landlords will we make the difference for tenants who are struggling to pay their bills.”
She added: “If the government disagree with our proposals, I ask them to suggest an alternative. All we have seen so far is that from 2025 landlords will no longer need to meet the energy performance certificate C standard.”
Must engage with landlords
Ms Hobhouse told the debate that landlords have contacted her to say that they cannot afford to upgrade their properties to EPC C standards.
She said that the government must engage with landlords on energy-efficiency standards.
She said: “One in four private renters live in fuel poverty, and 1.6 million children are living in privately rented cold, damp or mouldy homes. Landlords have contacted me saying that they cannot afford to upgrade their properties to energy-efficient standards.
“That, too, is just a bit of education, a bit of knowledge that we must share as a matter of urgency.
She added: “I believe that local councils are best placed to be the trusted sources of that type of information, but the government must see them as partners and people to engage with, and give them the opportunities and resources that they need in order to share the information that is so badly needed in our communities.”
You can watch the Liberal Democrats plan for energy-efficiency targets below.
Tags:
energy efficiency, EPC Reforms, EPC rules scrapped, home insulation, lib dems proposal EPC, Liberal Democrats
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Member Since September 2019 - Comments: 77
9:35 AM, 13th November 2023, About 2 years ago
We already can.
Next!
Member Since April 2017 - Comments: 163 - Articles: 1
9:44 AM, 13th November 2023, About 2 years ago
Yes of course. All of these costs are set against rental income. So would be replacing all the windows for double glazed units for instance.
Member Since January 2017 - Comments: 65
10:08 AM, 13th November 2023, About 2 years ago
It beggars belief how little insight some politicians have to how the PRS, or any business for that matter, operates. Furthermore, I’m convinced that many politicians, and the public as a whole, actually think that “offsetting things against tax” means they don’t cost us anything. I’ve even seen some people make comments on here suggesting that’s what they believe.
Member Since March 2020 - Comments: 184
10:42 AM, 13th November 2023, About 2 years ago
An EPC D home is not necessarily ‘cold, damp and mouldy.’ I’ve lived in many and they’ve all been fine. Most Victorian owner occupied homes are D, E or even F.
Member Since October 2020 - Comments: 1134
11:03 AM, 13th November 2023, About 2 years ago
I believe that some EPC upgrades would be classed as improvements and only claimable against CGT, not rental income.
Member Since January 2020 - Comments: 1102 - Articles: 1
11:30 AM, 13th November 2023, About 2 years ago
Reply to the comment left by Ross Tulloch at 13/11/2023 – 09:44
Where do you get that from? Improvements are capital expenditure unless there is a specific concession from HMRC, such as applies to replacing single glazed windows with double glazed.
Member Since July 2013 - Comments: 305
12:14 PM, 13th November 2023, About 2 years ago
I’ve asked Ms Hobhouse to clarify how her proposals differ from what is already in place.
I’ll post her reply.
Member Since January 2020 - Comments: 1102 - Articles: 1
12:23 PM, 13th November 2023, About 2 years ago
Reply to the comment left by Adrian Jones at 13/11/2023 – 12:14She is proposing that all improvements designed to improve the EPC rating should be allowable against income tax. That is not the position at the moment, improvements are classed as capital expenditure unless there is a specific concession from HMRC.
Member Since January 2022 - Comments: 267
1:17 PM, 13th November 2023, About 2 years ago
Reply to the comment left by Seething Landlord at 13/11/2023 – 11:30
I have asked tax advisers and it would seem there is some uncertainty around Upgrading a property for EPC REASONS, might be capital Improvement and subject to CGT.
IT would be good to have 100% clarity on this, something politicians seem to struggle with.
Member Since April 2017 - Comments: 163 - Articles: 1
2:27 PM, 13th November 2023, About 2 years ago
My understanding is very clear, almost any replacement of new for old is inevitably an improvement. For instance double glazing I’ve had several I’ve done at £25,000 a pop on council properties. I wouldn’t these days replace single glazed with single glazed so it is inevitably an improvement.
It will do very little to the capital value of the property, but my understanding is very clearly, but it goes against revenue.
Or storage heaters for a complete central heating system. Again always against revenue. Yes of course it’s an improvement but it doesn’t really change the capital value of the house very much.