Enhanced Capital Allowances
Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. There are three schemes for ECAs:
- Energy-saving plant and machinery
- Low carbon dioxide emission cars and natural gas and hydrogen refuelling infrastructure
- Water conservation plant and machinery
Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment. This can deliver a helpful cash flow boost and a shortened payback period.
An up-to-date list of the technologies that qualify for the allowance can be found on the Energy Technology Product List (ETPL). The groups currently on it are:
- Air-to-air energy recovery
- Automatic monitoring and targeting (AMT)
- Boiler equipment
- Combined heat and power (CHP)
- Compact heat exchangers
- Compressed air equipment
- Heat pumps for space heating
- Heating ventilation and air conditioning equipment
- Lighting Motors and drives
- Pipework insulation
- Radiant and Warm Air Heaters
- Refrigeration equipment
- Solar thermal systems
- Uninterruptible Power Supplies (UPS)
The water conservation list includes:
- Cleaning in place equipment
- Efficient showers
- Efficient taps
- Efficient toilets
- Efficient washing machines
- Flow controllers
- Leakage detection equipment
- Meters and monitoring equipment
- Rainwater harvesting equipment
- Small scale slurry and sludge dewatering equipment
- Vehicle wash water reclaim units
- Water efficient industrial cleaning equipment
- Water management equipment for mechanical seals
- Efficient membrane filtration systems
Wolseley is able to supply a substantial range of products which qualify for Enhanced Capital Allowances. Why not take a look at our Products section?