Non Domestic EPC Regulations – 1st April 2018

Changes to the Energy Act 2011 provide for powers to ensure that from April 2018, it will be unlawful to rent out residential or business premises that do not reach a minimum energy efficiency standard. Energy Performance Certificates (EPC) rate how energy efficient your building is; using grades ‘A’ to ‘G’ (with ‘A’ being the most efficient).

The regulations will require landlords of non-domestic buildings to have secured an EPC certificate with an E rating or higher in order to issue a new lease for a property. This will come into force on 1st April 2018. The additional requirement to secure an EPC certificate for properties with existing leases will come into force from 1st April 2023. A summary of the key points can be seen below:

EPC Regulations

Tax Relief

The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure and the ETCL specifies the criteria for energy saving technologies that are supported by it. This means that businesses can write off the whole cost of the equipment against taxable profits in the year of purchase.

Carbon Emissions

The Climate Act 2008 is an important piece of UK legislation that on a five yearly cycle, requires the Government to compile an assessment of the risks for the UK arising from climate change, and then to develop an adaptation programme to address those risks.

Through the Climate Change Act, the government has committed to: Reduce emissions by at least 80% of 1990 levels by 2050.

Carbon Budgets. The Climate Change Act requires the government to set legally binding carbon budgets. A carbon budget is a cap on the amount of greenhouse gases emitted in the UK over a five year period.

The CCC advises on the appropriate level of each carbon budget. The budgets are designed to reflect a cost effective way of achieving the UK’s long term climate objectives. The first five carbon budgets have been put into legislation and will run up to 2032.

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