What is Enhanced Capital Allowance (ECA) Scheme?

The Enhanced Capital Allowance scheme is a Government programme designed to manage climate change and encourage businesses to invest in both energy and water saving equipment.  The ECA scheme allows businesses to write off 100% of their investment in such technologies against their taxable profits in the year the investment was made.  Each claim is assessed on its potential to deliver real energy savings. 

The qualifying product needs to be resourced from a government approved list known as the Energy Technology List (ETL).  The current list has already been updated to include new or modified products that meet the criteria.

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Do you have any qualifying products listed in the Energy Technologies List?

Within each technology area there can be sub-technologies:

  • Air to Air energy recovery
  • Boiler Equipment
  • Combined Heat and Power
  • Compressed Air Equipment
  • Heat Pumps
  • Heating, ventilation and air conditioning (HVAC) equipment
  • High Speed Hand Air Dryers
  • Lighting
  • Motors and Drives
  • Pipework Insulation
  • Radiant and warm air heaters
  • Refrigeration equipment
  • Solar thermal systems

For more information, visit https://www.gov.uk/etl

Benefits to your business:

  • Provides a tax incentive to businesses who invest in equipment from the ETL List
  • Open to all businesses that pay UK Corporation or Income Tax, regardless of its size, section or location
  • Improve cash flow
  • Lower energy bill
  • Reduction in Climate Change Levy or CRC payment
  • Allows you to trade in Enhanced Capital Allowances to benefit from a cheque payment from HMRC

Capital Allowance Review Service can help you maximise the benefits of using energy saving plant and machinery.  Our strategic team specialise in helping commercial property owners claim substantial amounts of tax relief they didn’t realise they had.

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Need further information? Call us to speak to an expert today.

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