ECA - Enhanced Capital Allowance
In April of 2001, the Government introduced the Climate Change Levy (CCL). The CCL is a tax on energy bills which all business and public sector organisations pay, and was introduced to reduce the British energy usage and concur with the Kyoto Protocol.
What is the ECA?
To achieve our CO2 reductions the Government introduced
an incentive scheme called the Enhanced Capital Allowance (ECA). Under
this scheme, expenditure on products and technologies on the ECA list
qualify for 100% first year tax allowances.
The list of equipment and qualifying criteria can be viewed on the website
at www.eca.gov.uk
Tax allowances for Air Conditioning equipment can also include the following:
- Full cost of the system
- Transportation and installation costs including craneage & project management
- Professional fees
- Cost of alteration to an existing building to accommodate the installation
Claiming the Allowance
The ECA's are claimed in the same way as other capital
allowances on the Corporation Tax Return for companies and the Income
Tax Return for individuals and partnerships.
The Air Conditioning product must be on the Energy Technology Product
List on the ECA website to be eligible for the claim.
