Income Tax (Trading and Other Income) Act 2005 section 313

Restrictions on relief

Section 313 sets out the circumstances in which the tax deduction for expenditure on energy-saving items (allowed under section 312) is restricted or denied entirely.

• No deduction is available if the dwelling-house is still under construction when the energy-saving item is installed, or if the landlord does not yet hold an interest in the land.
• No deduction is available where the landlord receives rent-a-room receipts from the property and those receipts are brought into account under the rent-a-room relief rules.
• Where pre-trading expenditure rules apply, the deduction is only available if the energy-saving expenditure was incurred no more than 6 months before the property business started.
• No deduction is allowed for any part of the cost of acquiring and installing the energy-saving item in a building that is not for the benefit of the specific dwelling-house in question.