Letter of Authority (UK): What It Is, Why It Matters, and How to Use It”
You wouldn’t hand over the keys to your business dealings to just anyone — so why do it without understanding a Letter of Authority (LOA)?
Why are Letters of Authority needed in the United Kingdom?
A Letter of Authority (LOA) is a legal document that gives a third party, person or organisation permission to act on your behalf.
For example, you might want to grant energy consultants to contact service providers like your current energy suppliers authority to seek information about your account from your current energy supplier to get the information they need to ascertain whether it is a good idea for you to switch supplier.
Or you might give a letter of authority to your financial advisor to seek historical account information from your current financial institutions to enable you and your financial adviser to seek the best experience and pathway for you.
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Letter of Authority v Power of Attorney
Letter of authority forms differ from other legal documents like Power of Attorney.
They are less formal and don’t grant power to make decisions.
LOAs are widely used in the UK for sectors like energy, financial services, and real estate and other practice area professionals to obtain business information.
The institutions receiving letters of authority will release information upon receipt of the signed LOA and no more.
They are used for full access but with limited permission to act on behalf of the signatory.
In this guide, you’ll learn exactly what an LOA is, when and how to use one, and the legal and practical implications of signing it.
COMMON USE CASES
COMMON USE CASES (By Industry)
- Energy Suppliers / Energy Consultants
- Switching suppliers
- Viewing meter readings and historical account info
- Comparing energy prices and contracts
- Financial Services
- Life insurance
- Policy management (policy number, contract end dates)
- Access to financial adviser services
- Real Estate & Public Sector
- Representing property owners or tenants
- Submitting documentation for legal disputes
- Business Services
- Third-party procurement
- Technical support access
- Dispute resolution or contract negotiation
- Local Government
- Council Tax and Rates (large and smaller businesses)
- Benefits and housing support
- Housing and tenancy for your UK home
- Adult social care
- Rural land
- Authorising a land agent or solicitor to speak to the local planning authority
- Liaising with the local council about boundaries or enforcement notices
- Speaking to the Rural Payments Agency (RPA) or DEFRA on the landowner’s behalf
- Managing Single Farm Payment or Basic Payment Scheme (BPS) claims (although formal mandates are often needed for these)
WHAT MAKES A VALID LETTER OF AUTHORITY?
- Must include:
- Name or Business name & address
- Contact details & email address
- The name of the person or business that is authorised
- Scope of the authority – e.g. “to collect documents on my behalf”
- Signature & date
- Duration
LOA INTERNATIONALLY
LOAs can be used internationally. But be careful of local laws. Make sure the recipient is happy to use an LOA and not a POA. And bear in mind EU law and international trade scenarios, are you sure you don’t need a power of attorney?
- Some common overseas uses include:
- Authorising someone to collect documents from an embassy, consulate, or foreign notary
- Dealing with local service providers (e.g. utilities, landlords, storage companies) when the person granting authority is outside the country
- Providing instructions to a foreign lawyer or agent in relation to non-binding administrative matters
- Giving a third party access to paperwork or processes in countries that don’t require a formal power of attorney
Key Considerations for Overseas Use
If the Letter of Authority is to be used abroad:
- Language – Consider translating the letter into the official language of the receiving country.
- Format – Keep the letter formal, clearly worded, and specific about the authority being granted.
- Verification – It may be helpful (or required) to have the signature notarised by a notary public or certified, especially in cross-border matters.
- Apostille – Some countries may request an apostille on the letter (under the Hague Convention) to confirm its authenticity.
- Legal Limitations – For more complex or binding matters (e.g., selling property, opening a bank account), a Power of Attorney is usually required, not just a letter of authority.
Visit our Notary Public London page if you need a notary.
If you think you might need an Apostille, visit our Apostille Service page.
FINAL APPROVAL & NEXT STEPS
- Before signing, know:
- Who you’re authorising
- What access they’ll have
- When it expires
- your Letter of Authority valid for use
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Frequently Asked Questions
A Letter of Authority (LOA) gives someone permission to act on your behalf for a specific task or limited scope—like dealing with an energy supplier contract.
A Power of Attorney (POA) is more formal and legally powerful, often used for broader authority, including financial and legal matters.
Yes! We tailor our content services based on your business needs.
Yes, an LOA is legally binding as long as it’s properly signed and includes all necessary details. However, its power is limited to the scope defined in the letter, and it doesn’t carry the same weight as a Power of Attorney.
Yes! We tailor our content services based on your business needs.
Yes, you can cancel an LOA at any time. Just let the authorised party and any third parties involved (like your supplier or broker) know in writing that you’re revoking it.
No, they don’t have to accept it. Some companies have their practice compliance policies or may require specific formats. It’s always best to check with them first to see what they’ll accept.
If you need a Letter of Authority Notarised get in touch now.
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