Can your company benefit from the Enhanced Capital Allowance (ECA) Scheme?

What if we told you that you could install or upgrade HVAC and refrigeration equipment and offset 100% of the cost of those assets against your company’s taxable profits in a single tax year.

 

ECA coverWhat is the ECA Scheme & how does it work?

 

The ECA scheme, run by the Carbon Trust on behalf of the Government, allows businesses to invest in more efficient and energy saving plant or machinery that meets the specifications set out for qualifying equipment on the Energy Technology List (ETL).

Businesses can claim an ECA not only on the cost of qualifying equipment, but on the transportation of it to site and any direct installation costs.

ECAs (as with other capital allowances) are claimed in a business’s tax return and you will need to keep records of the purchase of any plant and machinery, including energy-saving equipment.

 

 

energy-saving-tax-efficiency

Reducing future expense

 

Business owners are often tempted to purchase equipment with the lowest initial outlay which can prove a false economy in many cases. Choosing to install equipment covered under the ECA can provide a cash flow boost to company and therefore is an added incentive to invest in energy-efficient equipment which usually carries a price premium.

Upgrading to, or installing, qualifying plant and machinery will reduce your business’s future operating costs too with improved energy efficiency resulting in lower energy bills most importantly. It will also help to fulfil your company’s Corporate Social Responsibilities in reducing carbon emissions.

What technologies qualify?

 

The following technologies are specified in the ETL (please note that the list is regularly reviewed and qualifying technologies can be added or removed.

 Currently included are:

  • Air-to-air energy recovery.
  • Automatic monitoring and targeting (AMT) equipment.
  • Boiler equipment.
  • Combined heat and power (CHP).
  • Compressed air equipment.
  • Heat pumps.
  • Heating, ventilation and air conditioning (HVAC) equipment.
  • High speed hand air dryers.
  • Motors and drives.
  • Pipework insulation.
  • Radiant and warm air heaters.
  • Refrigeration equipment.
  • Solar thermal systems.
  • Uninterruptible power supplies.

This is great news for our customers that wish to install or upgrade equipment.

To talk to our team about whether your business can benefit from the scheme, please call us today on 01787 888659.

For more information on the ECA and qualifying technologies and equipment view the…

Carbon Trust’s document here