Tax incentives with Elmbreck

The Enhanced Capital Allowance Scheme

What is an Enhanced Capital Allowance?

The Enhanced Capital Allowance (ECA) Scheme provides upfront tax relief for businesses that invest in energy saving equipment, to qualify for ECA the equipment must be listed on the Energy Technology list.

What are the benefits to my business?

Businesses who invest in energy efficient technologies that qualify for the Enhanced Capital Allowance can claim 100% tax relief for their investment in the first year, delivering a significant cash flow boost and shortening the payback period on the investment.
Technologies qualifying for an ECA are energy efficient, which means significant long-term financial benefits in addition to the enhanced tax relief.
Investing in energy-efficient technologies reduces energy costs, Climate Change Levy payments and climate change impact.

Which energy efficient technologies qualify?

The Technologies Supported Are:

Air-conditioning Heat-pump systems, Refrigeration equipment, Refrigerated display cabinets and compressors, Thermal screens, Lighting, Combined heat and power, Boilers, Pipe insulation, Motors, Variable speed drives, Warn air and radiant heaters, Compressed air equipment, Solar thermal systems
Every piece of equipment qualifying for an ECA appears on the Energy Technology List at www.eca.gov.uk This list is being expanded continually, so it's well worth checking regularly.

The web site also gives contact details for the manufacturers of the qualifying equipment.
Manufacturers are being encouraged to use the Energy Technology List symbol to help companies procuring energy efficient products identify qualifying products and technologies. The ETL symbol signals independently approved energy efficient performance and the opportunity for end customers to claim ECA.

Who can claim?

Businesses in the charge to income tax or corporation tax, apart from those who are leasing the assets i.e. the end user, not the supplier or contractor. However, investments from 17 April 2002 in qualifying energy-saving equipment for leasing, letting or hire can qualify for an ECA.

How do I claim?

First check the Energy Technology List before investing in any new energy saving technology, as only products listed here qualify for an ECA. You can find the list at: www.eca.gov.uk

You can claim the allowance on the cost of the product, along with any costs directly associated with the provision of the product, such as installation costs.
Claim your ECA, as part of your normal income/corporation tax return calculations.

Where can I find further information?

You can find out more about ECA's including the Energy Technology List at www.eca.gov.uk
Other useful sites are The Inland Revenue www.inlandrevenue.gov.uk
Enhanced Capital Allowances Fact Sheet, Factsheet 6, 05 August 2002 Can be downloaded from the Action Energy web site www.actionenergy.org.uk
A generic leaflet is available on ECA's from www.eca.gov.uk reference FL112

The scheme is being developed by the Inland Revenue and The Department for Environment, Food and Rural Affairs (DEFRA) and managed by the Carbon Trust.

Tax incentives with Elmbreck
Elmbreck Webteam
currency, money, finance

The Enhanced Capital Allowance (ECA) Scheme provides upfront tax relief for businesses that invest in energy saving equipment, to qualify for ECA the equipment must be listed on the Energy Technology list.

...more
Elmbreck Webteam
question, quiz, unknown, mystery

How do I calculate the cooling or heating capacity of my room? Multiply the length x width x height of the room in metres multiply the total by 40, this will give you the answer in "watts"...

...more
Elmbreck Webteam
environment, green, nature

Mitsubishi Electric has developed a comprehensive 'end of life' recycling programme with Overton Recycling Ltd of Stourbridge with a free of charge collection of air conditioning equipment to Mitsubishi Electric customers

...more