The Governments Enhanced Capital Allowance Scheme; for energy saving technologies, allows profit, or loss-making businesses, to benefit from tax breaks when investing in eligible, energy-saving, equipment.
The scheme permits businesses to write off the whole cost of this equipment against any taxable profits in the year of purchase. This enables you to generate a cash flow boost and offers an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives.
Loss-making companies can also realise the tax benefit of their investment in ETL qualifying technologies, with Payable ECAs. This is achieved by surrendering losses attributable to ECAs, in return for a cash payment from the Government.
For more information on Enhanced Capital Allowances, you can visit the Government’s website whereby you can download the Carbon Trust’s ECA Guide (click here).
The Energy Technology List (a government-managed list of energy-efficient plant and machinery), specifies the energy-saving technologies that are included in the ECA scheme and can be found on the Government’s website (click here).