Statwatch

Energy-Saving Items (Corporation Tax) Regulations 2008 (SI 2008/1520)

Commence 7 July 2008. Specify a number of items which are to be classed as energy-saving items for the purposes of the Income and Corporation Taxes Act 1988 (ICTA), s 31ZA(5), which allows landlords within the charge to corporation tax (when calculating their taxable profits) to deduct expenditure on acquiring and installing these items in the residential properties which they let. Items of an energy-saving nature are: hot water system insulation; draught proofing; cavity wall insulation; solid wall insulation; floor insulation; and loft insulation. The regulations set the maximum amount of expenditure for which such a deduction may be made at £1,500 per dwelling-house in each tax year and include rules restricting the deduction and for making apportionments in cases where two or more persons have interests in a property or the expenditure benefits more than one property.