Solar installed on rental property

Hi, I've just had solar installed on my rental property and need some advice on if, and how, I can offset some of the cost on my self assessment return. After finding out from the Energy Saving Trust my tenant qualified for a grant I had the recommended energy saving work completed at my property. This was to replace four night storage heaters with new ones and to have a 2.5kw PV solar system installed. I then paid the company £2,700 for the balance not covered by the grant. I know there used to be some incentives for renewable energy and that the night storage heaters may be eligible to offset as they are replacing exisiting heaters, but would like some guidance on how if and how I can submit these on my self assessment tax return. Many thanks Steve

Hi ,
 

Thank you for your question. Guidance regarding the Landlords Energy Saving Allowance (LESA) and how to claim it, is available at: https: www.gov.uk/hmrc-internal-manuals/property-income-manual/pim7070 .  Thank you .

Hi, Thanks for the reply, although that page says it's archived guidance and appears to relate to energy efficiency improvements before 2015. Is there nothing more recent that's relevant to my enquiry? Thanks Steve

Hi ,
 

Thank you for your question. Unfortunately, the installation of solar panels is classed as a Capital Expense. There are no provisions to claim relief for this against rental income for this current tax year, Landlords Energy Savings Allowance is only available for qualifying expenditure between 6 April 2004 and 5 April 2015. However, please guidance at https:  www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income#cap-exp which advises- Capital expenses are not allowable and cannot be claimed against your rental income but you should keep records of them as you might be able to set them against Capital Gains Tax if you sell the property in the future . Thank you .