Enhanced Capital Allowances

Is your business entitled to Enhanced Capital Allowances? Could your business be paying too much tax? ECA’s encourage the use of certain plant and machinery within a business that focus on energy saving and reduced emissions. If your business has any of these, or you are about to purchase any for the business, then check out the qualification criteria and you could possibly make tax savings for your business. To help you through this process, LBW Chartered Accountants, based in Bromborough, Wirral, have a specialist team who can guide you through the process and help you to pay the correct levels of tax.

Enhanced Capital Allowances

To qualify for Enhanced Capital Allowances, there are some detailed criteria which must be met, but broadly speaking the items must be purchased as new and not be second-hand and fall into these categories:

  • Some vehicles with low C02 emissions
  • Specific energy saving equipment that is on the approved energy technology list
  • Water Saving equipment that is on the approved water efficient technologies product list
  • Plant and machinery for gas refuelling equipment
  • Zero-emission goods vehicles

Comprehensive details are available on the HMRC website HERE

Enhanced Capital Allowances

“The ECA scheme means that a business can invest in energy-saving plant or machinery that might otherwise be too expensive.

The first year allowances let businesses set 100% of the cost of the assets against taxable profits in a single tax year. This means the company can write off the cost of the new plant or machinery against the business’s taxable profits in the financial year the purchase was made.

An ECA is claimed through a business’s income or corporation tax return in the same way as any other capital allowance. HM Revenue and Customs is responsible for the tax-related aspects of the ECA scheme.” HMRC Website

Enhanced Capital Allowances

The Government Website has an outline guidance list for qualifying products as follows:

  • 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
  • Lighting
  • Motors and drives
  • Pipework insulation
  • Refrigeration equipment
  • Solar thermal systems
  • Uninterruptible power supplies
  • Warm air and radiant heaters
  • Waste heat to electricity conversion equipment

Does YOUR business have any of the above?

Enhanced Capital Allowances

Contact LBW to understand the Enhanced Capital Allowances regulations surrounding your business and to see if you can save money on your tax, or to discuss any other Accounting requirements. Their initial Free Consultation will prove that they are the Chartered Accountants that can help you.

For more information on any of the services provided, contact LBW Chartered Accountants directly for more information:

0151 644 4848



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