Enhanced Capital Allowance Scheme

Businesses that purchase technologies listed on the Energy Technology List (ETL) are entitled to accelerated tax relief on their taxable profits.

If your business purchases a product from the list (or a product in ‘unlisted’ technology categories that meet ETL criteria), you’ll be able to claim 100% first year capital allowance through the ECA. Collectively the ETL and ECA scheme encourage businesses to invest in energy-saving equipment.

There are approximately 14,000 products currently listed that can be searched using the link below:

https://etl.beis.gov.uk/engetl/fox/live/ETL_PUBLIC_PRODUCT_SEARCH

The ECA scheme will close in April 2020, although it is important to note that the government has no plans to stop the ETL beyond April 2020.

Claiming ECAs for energy saving equipment is easy; you claim ECAs for energy-saving equipment through your corporation tax self-assessment return, which is the same way that you claim standard capital allowances. Purchasers should check to make sure that the product purchased is eligible for an ECA on the date of purchase. (A business or organisation that does not pay income or corporation tax cannot claim an ECA on energy-saving equipment.)

Evidence of an invoice with the claimed amount is required, as claims should be based on the invoice value of the eligible product. Usually the direct transport and installation costs associated with the purchase and installation of an ECA eligible piece of equipment can also be included in the claim.

We’re here to help – please contact Stephanie Hurst or Alison Bradshaw in the first instance, on 01793 818300.