Rural landlords should be preparing now for new legislation on Energy Performance Certificates (EPC), according to accountants.
From 2009, an EPC has been required by anyone letting residential property to a new tenant.
For all properties in Scotland (on construction, sale or rental to a new tenant) there is also a legal requirement for the EPC to be "affixed" to the building - in the boiler or meter cupboard, for example.
The EPC is used to highlight financial savings that could be gained in improving the energy performance of a property as well as giving the tenant - and in particular a new tenant - an idea of the expense of heating that property. In some cases rents have been reduced to compensate for badly performing properties or, at most extreme, properties with poor EPC ratings simply fail to let.
For rented property there is also a legal requirement for an EPC certificate valid for 10 years to be displayed.
But from next year, the EPC system becomes much more stringent in England and Wales.
For example, a tenant will be able to demand that their landlord carries out work recommended on an EPC and the landlord must do so by law.
Then from 2018 it will be illegal to let a property that has an EPC rating below Band E.
Currently, the new minimum EPC banding legislation only applies in England and Wales. The Scottish Government intends to consult over the summer for proposals in Scotland.
Shirley Mathieson, of chartered accountants Saffery Champness, said: "Time is running out for landlords to carry out the measures recommended in the EPCs for their rental properties. They should not wait until either those improvements are demanded by a tenant or, by not making the recommended improvements, allow a property to become unlettable.
"Repairs to a let property will normally be a deductible expense for tax purposes, however where the work carried out significantly enhances the property this can change the tax treatment meaning that the costs are "capital" in nature and hence no longer deductible as repairs. Under certain circumstances tax relief could still be claimed using capital allowances if the works meet certain criteria.
"When planning works to improve the heat efficiency of their properties landlords should be aware of the potential tax consequences and take advice where necessary to ensure that they are claiming the maximum available relief."
However Ms Mathieson said farmers and rural landlords may be able to get help with any additional costs they might incur.
She added: "The green deal can also help landlords to meet the costs of such improvements. These must be recommended by a green deal assessor, and carried out by qualified green deal installers. Costs can be met through a green deal loan for which the repayment levels are based on the energy savings made."
Market round-up
United Auctions sold 484 store heifers at Stirling on Wednesday to a top of 280.9p per kg and an average of 225.7p (-0.8p on the week), while 466 store, beef-bred bullocks peaked at 308.4p and levelled at 234.5p (+2.2p). Fifty-nine store, B&W bullocks sold to 177.3p and averaged 164.3p (-4.3p).
In the rough ring 194 cows averaged 130.6p.
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