Landlords Allowed Corporation Tax Deductions for Specified Energy-Saving Items
On 07 July 2008 The Energy-Saving Items (Corporation Tax) Regulations 2008 comes into force, allowing companies whose business involves charging rent for leases of land to make deductions from their profits expenditure when calculating corporation tax for acquiring and installing specified energy-saving items. The Regulations themselves amend the section of the Income and Corporation Taxes Act 1988 on ‘Deduction for expenditure on energy-saving items’, which was inserted into the 1988 Act by the Finance Act 2007.
Under the new amendments, up to £1500 can be deducted per dwelling-house for expenditure incurred between 8 July 2008 and 1 April 2015 on items of an energy-saving nature of the following descriptions:
- Hot water system insulation;
- Draught proofing;
- Cavity wall insulation;
- Solid wall insulation;
- Floor insulation; and
- Loft insulation.
The full text of the Regulations can be accessed from:
http://www.opsi.gov.uk/si/si2008/uksi_20081520_en_1
Source: http://www.opsi.gov.uk/ (accessed 01/07/08)