As an incentive for businesses to invest in energy efficient equipment the government has introduced the Enhanced Capital Allowance Scheme. (ECA)

What is Enhanced Capital Allowance?

You can offset the cost of the whole installation against tax in the first year, saving huge amounts of tax.

It is a tax allowance to encourage businesses to install and use energy efficient equipment. As the equipment we specify is remarkably energy efficient, it qualifies for inclusion in the government scheme, which means 100% tax allowance in the first year can be claimed on the cost of the equipment, including design, installation and commissioning costs.

The Key Features of the Scheme

• All businesses can claim Enhanced Capital Allowances on their qualifying expenditure regardless of size, industrial or commercial sector or location.
• Enhanced Capital Allowances permit the full cost
  of the investment in specified technologies to be relieved for tax purposes against taxable profits for the period of the investment.

• The qualifying technologies have to meet the published energy saving criteria. These are published in the Energy Technology Criteria List, where the criteria will be reviewed on an annual basis.
• Only investments in new and unused plant and machinery can qualify for ECAs.