Who can claim LESA?

You can claim LESA if you are a landlord renting out residential property and are either:

• an individual landlord – someone who pays income tax on profits from letting
• a corporate landlord – someone whose rental business is registered as a company and you pay corporation tax on profits from letting

However, you can’t claim if you are a landlord:

• claiming an allowance under the ‘Rent a Room’ scheme
• of a property rented out as furnished holiday accommodation

• The Rent a Room scheme (money, tax and benefits section)

LESA – how much is it and what does it cover?

LESA is a tax allowance (not a cash payment) that allows you to claim up to £1,500 against tax every year. This allowance can be claimed for properties you rent out in the UK and abroad. You can claim LESA for the costs of buying and installing certain energy saving products for properties you rent out, but only for what you actually spend.

You can claim LESA for what you have spent on:

• cavity wall and loft insulation, after 6 April 2004
• solid wall insulation, after 7 April 2005
• draught proofing and hot water system insulation, after 6 April 2006
• floor insulation, after 6 April 2007

You can claim LESA up to 1 April 2015, when the availability of this allowance will end.

When was the allowance available from?

Individual landlords have been able to claim the allowance since 6 April 2004 – for corporate landlords it’s been available since 8 July 2008.

How to apply for LESA

You claim the allowance when filling in your tax return.

Individual landlord

If you are an individual landlord, you claim the allowance when you fill in your self assessment tax return. You’ll need to fill in the costs of buying and installing the energy saving products in the ‘Landlord’s Energy Savings Allowance’ box on:

• the UK property pages – if your property is in the UK
• the foreign pages under the section ‘Income from land and property abroad’ – if your property is outside the UK

The amount you enter on the form is claimed against your taxable profits from renting out your property. This means when you fill in your tax return you deduct the amount you are claiming for this allowance from your income. This reduces the amount of tax you pay for the year.

Fill in your self assessment form online

You can fill in your self assessment form online – find out about the advantages of doing this and how to complete a form by following the link below.

• Understanding and using Self Assessment Online (money, tax and benefits section)

Or you can go straight to the form and fill it in on the HM Revenue and Customs (HMRC) website.

Corporate landlord

If you are a corporate landlord, you can claim LESA under ‘allowable business expenses’ on your corporation tax return form. You should go to business.link.gov.uk, a website providing advice for businesses, if you want detailed advice on how to fill in your corporation tax return.

• Corporation tax – how to fill in your tax return Opens new window

Claiming LESA on other energy saving products

LESA can’t be claimed on any energy saving products other than those listed in the section above: ‘LESA – how much is it and what does it cover?’ However, you could be entitled to other tax deductions if you are improving the energy efficiency of your property. This could apply to installing double glazing or more efficient hot water boilers that may fall under the category of repairs.

• Deductions, general matters, repairs – other energy saving products (HMRC) Opens new window

Can you claim LESA for more than one property?

Since 6 April 2007, it’s been possible to claim a maximum allowance of £1,500 for each house, flat or bed-sit you rent out. For example, if you rent out a building that contains four flats, you can claim up to £1,500 for each flat. Previously, the maximum allowance was £1,500 for the whole building.

Can more than one landlord claim LESA for the same property?

If a house, flat or bed-sit is owned by more than one landlord, they can claim a share of the allowance either in proportion to:

• their ownership of the property
• the money they have spent on buying and installing the energy saving products

Claiming LESA for installing energy saving products yourself

If you install the energy saving products yourself, you can claim LESA for the costs of buying the products. However, you can’t claim LESA for your own labour and time for putting them in.

Contact your local tax office about LESA

If you have further questions about LESA, contact your local HMRC tax office.

• Tax offices for individual tax – find your local office (HMRC) Opens new window

Saving energy and money in your property

By making energy saving changes to your property, you can help reduce carbon emissions and also save money.

If you want to make other energy saving improvements to your property, you may also be eligible for grants from public funds, your local council or energy supply company.

• Search for grants and offers – Energy Savings Trust

Link: http://www.direct.gov.uk/en/HomeAndCommunity/Privaterenting/RentingOutYourProperty/DG_175186

Gaps and draughts around skirting boards and floors are simple to fix yourself with a tube of sealant bought from any DIY store. Floorboards will rot without adequate ventilation, though, so don’t block under-floor airbricks in your outside walls.

Older homes are more likely to have suspended timber floors. Timber floors can be insulated by lifting the floorboards and laying mineral wool insulation supported by netting between the joists.

Many homes – especially newer homes – will have a ground floor made of solid concrete. This can be insulated If it needs to be replaced, or can have rigid insulation laid on top.

You don’t need to insulate the floors of upstairs rooms in your house if they’re above heated spaces (like the living room). But you should think about insulating any floors that are above unheated spaces such as garages, as you could be losing a lot of heat through those.

How much could you save?

Insulating and draught-proofing your floor can be a cost-effective energy saving measure, especially if you are able to do some or all of the work yourself:

Floor insulation – timber floor: Annual saving (£) Around £60

Cost

Around £100 (DIY)

Around £770 (professional)

Payback

Around two years (DIY)

Carbon dioxide saving per year

Around 240kg

Filling gaps between floor and skirting board: Annual saving (£) Around £25

Cost

Around £20

Payback

Around one year

Carbon dioxide saving per year

Around 100kg

Insulating a concrete floor will save around the same as insulating a timber floor, but the cost will vary enormously depending on circumstances.

How to install floor insulation

Not all home insulation work has to be carried out by a professional: it may work out cheaper to do the smaller jobs yourself with materials from your local DIY store. Filling the gaps between the skirting boards and the floor boards costs about £20 if you do it yourself. Insulating underneath the floorboards on the ground floor will cost about £100 in materials if you want to do it yourself, and if your floorboards are easy to lift and in good condition. Remember to seal any gaps between and around the floorboards when you put them back.

It’s even easier to insulate your timber floor if you have an unheated cellar or basement space underneath that you can get into. Check that the joists supporting the floorboards are in good condition and don’t show any signs of wet or dry rot. If the joists are okay, you can fit insulation in between them and hold it in place with netting if needed. The basement’s ‘ceiling’ should then have plasterboard fixed directly to the undersides of the joists, to provide fire resistance – and you can then fit more rigid insulation underneath that ‘ceiling’ to benefit from even more insulation.

Rugs and carpets on the floor will also help your feet feel warmer – which might mean you don’t feel the need to put the heating on as much.

Professional floor insulation

For some jobs, you might need to get some professional help. If you don’t feel confident lifting your floorboards yourself you can get a professional in to do this, fit the insulation and replace them afterwards. Costs will vary depending on how big your house is and how easy the floorboards are to lift and to replace, but as a rough guide costs might start at around £770 for a semi-detached house.

For solid concrete floors, make sure that if they ever need to be replaced, your builder puts in insulation – in fact, you have to insulate a floor when it is replaced in order to comply with Building Regulations. Solid floors are insulated using rigid insulation foam, which can be fitted either above or below the concrete. If the concrete is above the insulation it can sometimes store heat during the day which helps keep the room warm at night. On the other hand, if the insulation is above the concrete, the room will heat up more quickly in the morning.

If your concrete floor doesn’t need to be replaced, it can still be insulated. Rigid insulation can be laid on top of the original concrete floor, then chipboard flooring put on top of that. This will raise the level of the floor, so you will need to make sure doors are trimmed shorter to make room for the insulation, and skirting boards and some electrical sockets might need to be moved.

Finding an installer

If you are looking for someone to come in and insulate your floor, then we would recommend that you look for an installer who is a member of the National Insulation Association. (Visit the National Insulation Association website).

If you are looking to insulate your floor as part of a bigger refurbishment job, then you will probably want to use your existing builder. If they are unfamiliar with floor insulation,  they can access advice on how to do this in our section for building industry professionals.

Complying with building regulations

If you are adding extra insulation to your floors, the work will need to comply with the relevant Building Regulations for where you live. Your installer will normally arrange this for you but if you are doing it yourself, it is your responsibility to comply.

If you live in England or Wales, the floor should achieve a U-value of 0.25 W/m2K or less, if possible. The U-value is a measure of how quickly heat will travel through the floor. To achieve this standard you will normally need at least 70mm of high-performance foam insulation, or 150mm of mineral wool, but this will vary depending on floor type, shape and size.

If you are replacing at least half of a floor then you have to insulate to these standards whether you planned to or not.

For further information, and for regulations in Northern Ireland and Scotland, we recommend that you contact your local Building Control Office before starting work.

How do I tell what kind of floor I have?

If you have a basement or cellar beneath your house that you can get into safely, go and take a look. If the floor is a suspended wooden floor, you will probably be able to see wooden joists and the undersides of the floorboards. Also, if you have air bricks or ventilation bricks on the outside wall(s) of your house that are below floor level, you probably have a suspended timber floor. (If you do have these airbricks in your walls, don’t block them up. They are needed to help ventilate the space under your floor and stop your floorboards from rotting.)

If you don’t have access to the space underneath your house, you will need to lift a corner of the carpet and underlay and have a look. If you live in a flat (apart from the ground floor) then you will also need to lift the carpet to see what kind of floor you have. However, you don’t need to insulate your floor if there is another flat beneath you.

Link: http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Floor-insulation

How much could you save by draught-proofing?

Full draught-proofing will save you on average £55 per year. Draught-free homes are comfortable at lower temperatures – so you’ll be able to turn down your thermostat. This could save you another £60 per year.

If every household in the UK used the best possible draught proofing, every year we would save £190 million, and enough energy to heat nearly 400,000 homes.

Where to look for draughts?

Draughts happen where there are unwanted gaps in the construction of your home, and where openings are left uncovered.

You’ll find draughts at any accidental gap in your home that leads outside, such as:

• windows
• doors – including keyholes and letterboxes
• loft hatches
• electrical fittings on walls and ceilings
• suspended floorboards
• pipework leading outside
• ceiling-to-wall joints

You should block most of these – but be careful in areas that need good ventilation:

• areas where there are open fires or open flues
• rooms where a lot of moisture is produced, such as the kitchens, bathrooms and utility rooms.

DIY or professional?

• DIY draught-proofing typically costs around £120 for materials.
• Professional draught-proofing might cost double this.

If you’re happy carrying out simple DIY tasks, draught-proofing will be no problem. However, some homes, especially older homes with single glazing, will be more difficult to draught-proof – it might be worth asking a professional. Professional draught-proofing is likely to save more energy because the installer will know exactly the right materials to use and where to use them.

Choosing the right draught-proofing materials…

There are plenty of DIY stores that sell draught-proofing materials, but look for draught-proofing with the Kitemark – this shows that the product is made to a good standard. British Standard Institution accredited products have a 20-year life if properly installed and maintained.

Windows

For windows that open, buy draught-proofing strips to stick around the window frame and fill the gap between the window and the frame. There are two types:

• self-adhesive foam strips – cheap, and easy to install, but may not last long.
• metal or plastic strips with brushes or wipers attached – long-lasting, but cost a little more.

Make sure the strip is the right size to fill the gap in your window. If the strip is too big it will get crushed and you may not be able to close the window. If it’s too small there will still be a gap.

For sliding sash windows, foam strips do not work well. It’s best to fit brush strips or consult a professional. For windows that don’t open, use a silicon sealant.

Doors

Draught-proofing outside doors can save a lot of heat and will only cost you a few pounds. There are four main things to think about:

• the keyhole – buy a purpose-made cover that drops a metal disc over the keyhole
• the letterbox – use a letterbox flap or letterbox brush, but remember to measure your letterbox before you buy
• the gap at the bottom – use a brush or hinged flap draught excluder
• gaps around the edges – fit foam, brush or wiper strips like those used for windows.

Inside doors need draught-proofing if they lead to a room you don’t normally heat, such as your spare room or kitchen. Keep those doors closed to stop the cold air from moving into the rest of the house. If there is a gap at the bottom of the door, block it with a draught excluder – you can make one stuffed with used plastic bags or bits of spare material.

Inside doors between two heated rooms don’t need draught-proofing, as you don’t lose energy if warm air circulates.

Chimneys and fireplaces

If you don’t use your fireplace, your chimney is probably a source of unnecessary draughts. There are two main ways to draught-proof a chimney:

• fit a cap over the chimney pot – this might be better done by a professional.
• buy a chimney balloon – an inflatable cushion that blocks the chimney.

Remember to remove the draught-proofing if you decide to light a fire!

Floorboards and skirting boards

You can block cracks using filler that you squirt into the gap. Floorboards and skirting boards often contract, expand or move slightly with everyday use, so you should use a filler that can tolerate movement – these are usually silicon-based. Look for:

• flexible fillers
• decorator’s caulk
• mastic-type products

Fillers come in different colours, and for indoor and outdoor use. They block gaps permanently so be careful when you apply them and wipe off any excess with a damp cloth before it dries. They may break down over time, but can easily be re-applied.

Check whether you also need to insulate between the skirting board and the floor.

Loft hatches

Hot air rises and gets lost into the cold space in your loft or attic, so it’s worth blocking off draughts around your loft hatch. Use strip insulation, as you would on a door.

Pipework

You can fill small gaps around pipework with silicon fillers, similar to the fillers used for skirting boards and floorboards. Fill larger gaps with expanding polyurethane foam. This is sprayed into the gap, expands as it dries, and sets hard.

Old extractor fans

Old fan outlets may need to be filled with bricks or concrete blocks and sealed from the inside and outside.

Cracks in walls

You can fill in cracks using cements or hard setting fillers – but if it’s a large crack, there may be something wrong with your wall. Consult a surveyor or builder to see what caused the crack in the first place.

Ventilation

Air needs to flow in and out of your house so it stays fresh, dry and healthy. Make sure you don’t block or seal any intentional ventilation:

• extractor fans – these take out damp air quickly in rooms where lots of moisture is produced (kitchens, bathrooms and utility rooms)
• under-floor grilles or airbricks – these help keep wooden beams and floors dry
• wall vents – these let small amounts of fresh air into rooms
• trickle vents – modern windows often have small vents above them to let fresh air trickle in

Draught-proofing products and installers

For a list of registered installers whose work is guaranteed for ten years, see the National Insulation Association website.

For products, installers and manufacturers see the Draught Proofing Advisory Association.

Roof and loft insulation

Heat rises, and in an uninsulated home a quarter of your heat is lost through the roof. Insulating your loft, attic or flat roof is a simple and effective way to save that waste and reduce your heating bills – you can even do it yourself.

Loft insulation is effective for at least 40 years, and it will pay for itself over and over again in that time.

How much could you save?

Choosing loft insulation

Installing loft insulation

Pipes, water tank and loft hatch

How much could you save?

These are estimates based on insulating a gas-heated, semi-detached home with three bedrooms, showing savings when you insulate an uninsulated loft, and when you top up 100mm of insulation to 270mm. (The recommended depth for mineral wool insulation is 270mm but other materials need different depths.)

If your loft is already insulated, it’s worth checking that you’ve got enough insulation to get the maximum saving. If everyone in the UK installed 270mm loft insulation, we could save nearly £500 million – and 2.7 million tonnes of carbon dioxide every year, the equivalent of taking nearly 100,000 cars off the road.

Choosing loft insulation

Easy access and regular joists

If your loft is easy to access and has no damp or condensation problems, it should be easy to insulate – you could even do it yourself.

If access is easy and your joists are regular, you can use rolls of mineral wool insulation. The first layer is laid between the joists – the horizontal beams that make up the ‘floor’ of the loft – then another layer is cross-laid at right angles to cover the joists and make the insulation up to the required depth. This can be done by a competent DIY-er or a professional installer.

Storage or living space

If you plan to use the loft or attic for storage, you will want to lay boards over the joists.  Unfortunately, if you only insulate between the joists before doing this, the insulation won’t be thick enough.  To get enough insulation you can:

• insulate between the joists with mineral wool and then lay rigid insulation boards on top, with wooden boarding on top of that.  You can buy insulation board pre-bonded to floor boarding to make the job easier.  Or:
• raise the level of the floor so you can fit enough mineral wool beneath the new floor level.

Either way, make sure you don’t squash the mineral wool when you fit the boards on top – this will reduce its insulation value.

If you want to use your loft for living space, you can insulate the roof of the loft instead of the floor by fixing rigid insulation boards between the roof rafters. Boards must be carefully cut to the right width so that they fit snugly between the rafters. They can then be covered by plasterboard. Rafters aren’t usually very deep, so to get the best performance you may have to insulate over them as well, using insulated plasterboard.  If there isn’t room to do this, make sure you use the highest performance insulation board available.

Difficult access

If your loft is hard to access, you can have blown insulation installed by a professional, who will use specialist equipment to blow loose, fire-retardant insulation material made of cellulose fibre or mineral wool into the loft. This doesn’t usually take more than a few hours.

Irregular joists

If your loft space is irregular, the joists are the wrong distance apart for rolls of mineral wool, or there are lots of obstructions that make laying matting tricky, you can use loose-fill insulation. This is sold in bags as cork granules, vermiculite, mineral wool or cellulose fibre, which can be poured between the joists to the right depth. This can be done by a competent DIY-er or a professional installer: you may need to increase the height of the joists to get the insulation deep enough.

Flat roofs

A flat roof should preferably be insulated from above. A layer of rigid insulation board can be added either on top of the roof’s weatherproof layer, or directly on top of the timber roof surface with a new weatherproof layer on top of the insulation. This is best done when the roof covering needs replacing anyway. In fact, if your flat roof needs to be replaced, you have to insulate it to comply with Building Regulations.

It is possible to insulate a flat roof from underneath, but this can lead to condensation problems if not done correctly. Either is generally a job for a professional.

Installing flat roof insulation could save you around £180 and 800kg of carbon dioxide a year if half your roof area is flat – the savings will vary depending on how much of the property has a flat roof.

Damp lofts

Insulation stops heat escaping from living spaces, so it will make your loft space cooler – which could make existing damp or condensation problems worse. Get professional advice before installing insulation to see if you can fix the damp problems first.

Installing loft insulation

Find out about the materials used for loft insulation.

To get a list of possible installers:

• go to the National Insulation Association website
• call your local Energy Saving Trust advice centre free on 0800 512 012.

Pipes, water tank and loft hatch

Insulating between the joists of your loft will keep your house warmer but make the roof space above colder. Pipes and water tanks will be more likely to freeze, so you will need to insulate them. If your water tanks are some distance from the loft hatch, you will also need something to walk on for safe access.

The cooler air in your insulated loft could mean that cold draughts come through the loft hatch. To prevent this, you can fit an insulated loft hatch and put strips of draught-excluding material around the edges of the frame.

Source: http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Roof-and-loft-insulation

Lighting accounts for 8% of a typical household’s energy bills and cutting your lighting bill is one of the easiest ways to save energy and money in the home.