The Landlord’s Energy Saving Allowance (LESA) was a unique allowance given to the owners of dwelling houses who used their properties for ordinary property letting.

  • The allowance was limited to £1,500 per dwelling house and given on the cost of acquiring and installing certain energy-saving items.
  • The allowance was only available in respect of qualifying expenditure incurred between 6 April 2004 and 5 April 2015.

Qualifying expenditure

The type of expenditure which qualifies for the allowance and the amount of allowance given changed from 2004 to 2007:

From 6 April:

£1,500 allowance given

Energy saving expenditure


Per building

Loft and cavity wall insulation


Per building

Draught proofing


Per building

Hot water system insulation


Per dwelling house

Floor insulation


From 2007, where a single building contained two or more dwellings, the landlord could claim the allowance on each dwelling. In the case of a block of flats or student accommodation the allowance could be substantial.

Corporation Tax

LESA could be claimed on the energy-saving items listed above, provided the expenditure was incurred on or after 8 July 2008 and before 1 April 2015.The maximum allowance was £1,500 per dwelling house.


Expenditure was apportioned on a just and reasonable basis where:

  • A building had mixed use.
  • A building contained more than one dwelling house.
  • A property was let by more than one landlord.


A landlord could not claim the allowance:

  • If he claimed rent-a-room relief, see property profits
  • If the business was furnished holiday letting and the dwelling house consisted of some or all of that accommodation during the year.
  • During the course of construction.
  • If the dwelling house was comprised in land in which he did not have an interest.

Why couldn't the landlord claim capital allowances instead?

S35 CAA 2001 provides that expenditure incurred on plant and machinery for use in a dwelling house, does not qualify for capital allowances if the qualifying activity consists of:

  • An ordinary property business.
  • An overseas property business or.
  • Special leasing of plant and machinery.

The LESA was designed to encourage landlords to introduce energy saving measures.

Small print

S312 and s313 ITTOIA 2005, as modified by SI 2007/3278

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