Enhanced Capital Allowances
The Enhanced Capital Allowance Scheme enables businesses to claim 100% first year capital allowances on investments in technologies and products that encourage sustainable use. This means that businesses can now write off the whole cost of their investment against their taxable profits of the period during which they make the investment, which could make a huge difference to your business, not only with regards to initial investment but also reducing long-term costs.
Many energy saving measures require little or no expenditure, although some organisations find that they need to invest in new or upgraded equipment in order to reduce their energy consumption. This is where the Enhanced Capital Allowance (ECA) scheme comes into play as it helps organisations invest in energy saving equipment in a cost-efficient way.
There are three schemes for ECAs:
- Water conservation plant and machinery.
- Energy-saving plant and machinery.
- Low carbon dioxide emission cars and natural gas and hydrogen refuelling infrastructure.
Only investment in products approved and present on the Energy Technology List can qualify for an ECA claim, which we can advise you on. Those organisations who are not eligible to make ECA claims can still benefit from ongoing energy savings by using the Energy Technology List as a procurement tool.
Our experienced team can help you make the most of this scheme, and can lead you through the whole process. Please email us at info@businesscostconsultants.co.uk or call us on 0141 943 3344.