Government 'Energy Loan' and Landlords

shaloutay567

As a Landlord owning a few properties, how could the energy loan effect me. What happens if a tenant is given the loan then gives notice and leaves the property, who pays back the loan , is it on the property or person. If the property is empty when it comes to paying back could I be held responsible for paying back their loan.

MWT

shaloutay567 said:

As a Landlord owning a few properties, how could the energy loan effect me. What happens if a tenant is given the loan then gives notice and leaves the property, who pays back the loan , is it on the property or person. If the property is empty when it comes to paying back could I be held responsible for paying back their loan.

It isn't accurate to call it a loan.

It is not attached to a person or a property.

The reduction is given to every electricity account at a particular date, and is then recovered from every electricity account over the following years.

There is no intent to match those who receive the discount with those who will pay a premium in the future.

The current expectation is that the recovery will be by way of an increase in the standing charge (11p/day), so whoever is paying the standing charge will be paying the extra, regardless of if they received the discount.

daveyjp

Its not a loan its a hypothecated tax and is a good study into the argument as to why hypothcated taxes aren't a good idea.

The Chancellor is supposed to be the brightest tax money manager in the country, this shows he isn't and nor is the person who wrote into a mainfesto there would be no tax rises as it leads to what we are seeing.

NI has risen (also presented as hypothcated tax) and now there will be an additional hypothecated energy tax for 5 years.

400ixl

The benefit and liability will fall with whoever is the bill holder for the property at the time. So yes, different people could easily benefit vs lose when it comes to getting the payment and paying it back.

Astria

Yes, basically whoever is in one of your properties and has a electric bill around October will be given £200, if anyone moves in after that date they'll be paying towards the global loan regardless of whether they obtained the £200 or not. It's entirely possible that a single person could pay back none or far more than what they have been given.