Citation, commencement and interpretation

1. —(1) These Regulations may be cited as the Energy-Saving Items Regulations 2007, shall come into force on 6th April 2007, and shall have effect in respect of expenditure incurred on or after 6th April 2007.

(2) In these Regulations—

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

“deduction” means a deduction allowed under section 312 of ITTOIA 2005 (deduction for expenditure on energy-saving items);

“relevant expenditure” means expenditure which is incurred in acquiring and installing an energy-saving item in a dwelling-house.

Items of an energy-saving nature

2. The following descriptions of items of an energy-saving nature are specified for the purposes of section 312(5)(c) of ITTOIA 2005—

(a) hot water system insulation;

(b) draught proofing;

(c) solid wall insulation; and

(d) floor insulation.

Maximum expenditure allowed on energy-saving items

3. —(1) The maximum amount of the relevant expenditure which may be taken into account in calculating the deduction is £1,500 per dwelling-house.

(2) Paragraph (1) applies irrespective of the number of persons incurring relevant expenditure or entitled to a deduction in respect of that dwelling-house.

Further provisions relating to apportionments and contributions

4. —(1) Paragraph (2) applies if relevant expenditure is incurred on a dwelling-house which—

(a) is owned jointly or in common by the person entitled to the deduction and by other persons, or

(b) is subject to differing estates or interests.

(2) If this paragraph applies—

(a) a just and reasonable apportionment of the relevant expenditure must be made, and

(b) the deduction allowed is the part of the relevant expenditure incurred by the person entitled to the deduction.

(3) Paragraph (4) applies if relevant expenditure is incurred which—

(a) falls within paragraph (1), and

(b) exceeds the maximum amount (see regulation 3).

(4) If this paragraph applies—

(a) the relevant expenditure must be restricted on a proportionate basis to arrive at the maximum amount,

(b) a just and reasonable apportionment of the maximum amount must be made, and

(c) the deduction allowed is the part of the maximum amount incurred by the person entitled to the deduction.

(5) If the person entitled to the deduction has received a contribution from any other person towards the relevant expenditure incurred, that contribution shall be excluded in calculating the relevant expenditure incurred by the person entitled to the deduction.

(6) If in connection with this regulation any question arises as to the amount of the deduction to which a person may be entitled—

(a) the amount shall be treated as if it were an amount specified in a paragraph of subsection (1) of section 42 of the Income and Corporation Taxes Act 1988( 2 ) (appeals against determinations under sections 34 to 36 or Chapter 4 of Part 3 of ITTOIA 2005), and

(b) the procedure set out in that section shall apply accordingly.

Revocation of earlier Regulations

5. The Regulations listed in the Schedule are revoked.

SCHEDULE Regulations Revoked