Landlords are no longer able to let commercial spaces with an energy certificate of F or G. But there is a silver lining to the strengthened minimum energy efficiency standard (MEES) legislation. With tax breaks for bringing energy-inefficient buildings up to scratch.
About 18% of commercial properties in England and Wales have an EPC rating of F or G. Since 1 April, landlords have been unable to let them on new leases without remedial action.
Mr Oliver said: ‘Although in a few cases the situation can be easily rectified, most F and G rated properties will require a degree of refurbishment and modernisation before granting a new lease.’
Landlords can buy themselves time by extending current leases. However, from April 2023, all non-domestic buildings will have to comply with a rating of E or better to be legally responsible. This irrespective of the lease term.
Mr Oliver said that the tax-saving opportunities include enhanced capital allowances (ECAs). This provides 100% tax relief on some energy efficient and water conservation expenditure. ‘If refurbishment works are carefully designed around the energy and water technology lists as well as the relevant tax legislation. HMRC will in effect contribute towards the building’s upgrade while also improving the
Penalties for non-compliance with MEES regulations – introduced to help combat global warming – range from £5,000 to £150,000.
We can help identify from your property portfolio which are a priority to improve their insulation. Meeting legislation but also keeping your tenants comfortable.
Through accessing ECO funding, we are able to offer free or discounted cavity wall insulation or loft insulation to many residents across England and Wales.
For more information on how to access this funding and to discuss your insulation requirements, please email us on email@example.com or call 0800 318 867.
[Facts and Figures taken from www.eco-energi.com on 23/08/2018]