Going green may help your tax bill more than you thought!!

Qualifying expenditure on energy saving plant and machinery benefits from enhanced capital allowances (ECA’s) of 100% of the cost incurred.

In order to qualify, the product or technology must be on a qualifying list or subject to the issue of a certificate at the time the expenditure was incurred or the contract was entered into.

Energy saving plant and machinery is specified in a technology list or product list, issued by the Department for Environment, Food and Rural Affairs. (www.etl.decc.gv.uk/etl). Expenditure incurred on environmentally beneficial plant and machinery also benefits from these ECA’s. Environmentally beneficial plant and machinery only relates to water technology. (www.tinyurl.com/ecalist). 

These enhanced allowances have become increasingly important following the announcement that both the ordinary writing down allowance (WDA’s) and the Annual Investment Allowance (AIA) will be less generous.

From 1st April 2012, WDA’s will be reduced from 20% to 18% on main pool expenditure and from 10% to 8% on the Special rate pool. Furthermore, the AIA will be reduced from £100,000 to £25,000 pa.

The reduction in the AIA means that the rate of WDA’s becomes more important. The benefit of being able to claim 100% as opposed to 18% or 8% is clear to see.

Energy Saving Plant or Machinery

  • Boilers
  • Motors and drives
  • Refrigeration
  • Heat Pumps
  • Radiant and Warm Air Heaters
  • Compressed Air Equipment
  • Solar Thermal Systems
  • Automatic Monitoring and Targeting Equipment
  • Air to Air energy recovery equipment
  • Uninterruptible power supplies
  • Heating, ventilation and air conditioning equipment
  • High speed hand dryers   

Environmentally Beneficial Plant or Machinery

  • Efficient Taps
  • Efficient Toilets
  • Flow Controllers
  • Leakage Detection
  • Meters and Monitoring
  • Water Reuse Systems
  • Cleaning in Place Equipment
  • Efficient Showers
  • Efficient Washing Machines
  • Small -Scale Slurry and Sludge Dewatering Equipment
  • Vehicle Wash Waste Reclaim Units
  • Water Efficient Industrial Cleaning Equipment
  • Water Management for Mechanical Seals
  • Rainwater Harvesting Equipment

Contact Us

Address: 1st Floor, Regency Arcade, Molesworth Street.
Wadebridge, Cornwall, PL27 7DH.
Tel: 01208 813948
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