Property improvements designed to meet new energy improvement rules should be tax deductible, the Residential Landlords Association argues.
From 1 April all new and renewed tenancies will need homes to have an energy performance rating of E or better.
From April 2020 the rules will apply to all rental properties.
The government has said landlords who cannot afford to improve their homes to meet the new rules can register this. It also proposes that a £2,500 cap should be put on the amount landlords should have to pay to increase a property’s energy efficiency.
The RLA says all such building work should be tax deductible.
Money spent on making ‘repairs’ to rented property is currently deductible in this way, but ‘improvements’ are not.
The landlord association says this policy change would help “ambitious” energy efficiency improvements.
The RLA says 61 per cent of landlords would be encouraged to improve the energy efficiency of their properties if there was tax relief to do so.
RLA policy director David Smith says: “Whilst considerable improvements have been made over the last decade, private rented homes currently falling below the new energy standards are some of the hardest to treat properties of the country’s entire housing stock.
“Given the importance the Government attaches to improving the energy efficiency of rented homes there is a strong case for giving work to upgrade this the same tax treatment as for repairs.”