Government Energy Savings Initiatives

The Enhanced Capital Allowance

WHAT IS IT?

The government introduced the Enhanced Capital Allowance scheme (ECA) in April 2001 to benefit businesses who invest in approved energy savings and energy efficient technology. Benefits are that 100% of your outlay is paid back in year one of the installation on “approved” energy efficient products. (Parts and labour.)

The claim is done by your accountant and is deducted via your corporation tax return. Simpson Energy & Control Services would supply and install ECA approved products for any project and explain the mechanism of how your business could claim these monies back.

Energy Savings Initiatives - Who can apply?

Any business can apply if you pay corporation tax. Alternatively, if you don’t pay corporation tax, you can claim the money back through your companies’ tax return. Monies invested are deducted from your net profit figure in year one.

For the Inland Revenue guidance on the scheme for Enhanced 100% Capital Allowances and Energy Saving Investment please visit: http://www.inlandrevenue.gov.uk/capital_allowances/eca_guidance.htm