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.