Notice to Landlords – Flat Conversion Allowances, Energy-Savings Allowances
The special tax relief for flats over shops comes to an end on 5 April 2013. It may be renewed in next weeks budget but if the work is contacted for before 5 April, it can be claimed.
The main conditions to obtain relief are:
1. Maximum number of storeys- 4;
2. The flats must have been unoccupied or just used for storage for at least a year before conversion work starts;
3. The flats must be let on tenancies of less then 5 years;
4. No more than 5 living rooms.
The flat could be a basement under a commercial premises but it cannot be on the ground floor.
Other allowances to consider are expenditure on energy- saving items. The following items qualify
1. Cavity wall insulation;
2 Loft insulation;
3. Solid wall insulation;
4.Hot water system insulation;
5. Draught proofing;
6. Floor insulation
The maximum deduction for a tax year is £1,500 per dwelling. So if there are three flats in a building, relief of up to £4,500 can be claimed.
Tuchbands specialises in advising landlords and small businesss owners on their tax affairs.