Tax Reliefs / Grants

The following tax reliefs/incentives are currently available we believe (May 2010) – but please do not rely on this, by checking the detail with the appropriate authority.

DOMESTIC PREMISES:  5% VAT instead of 17.5% for professionally installed insulation measures including external wall insulation (rules apply).

PRIVATE LANDLORDS, DOMESTIC PREMISES: Up to circa £1500 relief against rental income via Self Assessment system for external wall insulation (rules apply) – per residence.

DOMESTIC PREMISES: CERT grants available, perhaps worth £1000/£2000 per home to be treated. Available at times via some energy retailers and not consistently available. Grants tend to favour housing off the mains gas network or housing with low SAP ratings (highly energy inefficient) or owner occupiers in receipt of State benefits or of advanced age. Criteria currently unclear – and grants restricted – position may change – talk of future financing schemes. CERT grants for local authorities and housing associations buoyant and much easier to access on multiple contract basis.

DOMESTIC PREMISES: CESP: substantial funding available to local organisations (local authorities etc) for area by area improvements on a contract basis in certain designated postcode areas in need of improvement.

Schemes for Scotland, Wales, Northern Ireland please refer to Scottish Executive, Welsh Assembly, Northern Ireland Executive.

COMMERCIAL LANDLORDS OF DOMESTIC PREMISES: Similar to private landlords. Presumably a block of apartments would be treated as one times the number of apartments provided whole block receives an external wall insulation system (refer to rules).

COMMERCIAL COMPANIES: Cost of external wall insulation treatment of own premises offsettable against Corporation Tax as to 10% per annum over ten years (refer to rules): substantial interest free loans available for building fabric energy efficiency measures (refer to Carbon Trust www.carbontrust.co.uk). Large companies needing to purchase carbon certificates or selling carbon credits may benefit from extensive use of external wall insulation on company owned premises. Property companies can benefit from use of external wall insulation in improving rental value prospects.