The Official Journal of the European Union has published on the 18th August 2008 the iInformation regarding the authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty in the cases where the Commission raises no objections. A tax relief of 30% has been agreed  in the Environmental protection for the period 1.4.2008-1.4.2015.

The Landlord's Energy Savings Allowance (LESA) seeks to encourage energy efficiency in the residential rented sector by allowing landlords to deduct from their taxable profits the costs of acquiring and installing certain energy saving items in properties they let. The UK Government regards household energy efficiency as a key area for reducing carbon emissions and for environmental protection. Over a quarter of the UK's carbon emissions are currently produced by residential properties and there is a particular need for action targeted at the residential rented sector, since such properties typically produce around 500 kg more carbon emissions per year than other homes.

Legal basis.

The relevant legislation regarding individual landlords can be found in sections 312 to 314 of the Income Tax (Trading and Other Income) Act 2005 together with the Energy Saving Items Regulations 2007 (SI 2007/831).

Beneficiaries and Budget.

The UK authorities have estimated that there are currently between 1,300 and 2,000 landlords of residential properties within the corporate sector, of whom around 30% own 100 properties or more. Therefore if every property was fully insulated, some landlords may exceed the de minimis limit of € 200,000 over three years. The UK authorities reckon that the number of such landlords is inferior to 1,000 which makes that the total aid amount is estimated at £ 8,000,000.

The aid scheme will apply from 01.04.2008 until 01.04.2015.

Detailed information about it can be found at the HM Revenue and Customs web site.