Enhanced Capital Allowances
Government backed Installer Scheme
What Is ECA?
The Enhanced Capital Allowance (ECA) scheme is a key part of the Government's programme to manage climate change. It provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria.
Enhanced Capital Allowances (ECA) allow the cost of an investment to be written off against the taxable profits of the period in which the investment is made. This can boost cash flow along with the comfort that your purchase will also benefit from reduced energy bills due to their energy efficient nature.
There are no catches or drawbacks to the scheme and it really should be seen as an incentive. The vast majority of market leading brands appear on the ETL giving you the peace of mind that manufacturer is both familiar and reputable.
For more information please refer to the ECA website http://www.eca.gov.uk/etl/
How do you claim an ECA?
ECA claims should be submitted as part of your normal corporate or income tax return.
It's important to retain all documents relating to your ECA claim, including invoices, dated screen prints from the ECA website and anything from the company that installs the equipment. HMRC may investigate any aspect of a tax return and you should have all necessary evidence to hand to support your claim.
For more information please refer to HM Revenue and Customs (HMRC)
Air Options & ECA Installations
When possible, Air Options will always try to engineer a tax efficient solution subject to it being fit for purpose and workable within your budget.
ECA qualification is dictated by the ETL ( energy technology list ) and Air Options can only help so far with this, the claim itself is then up to your business and your accountants. We will of course assist wherever possible.
Air Options have a wealth of experience in this sector and have engineered many systems from just a few thousand pounds to in excess of six figures which have successfully qualified.
Please feel free to contact us today to discuss your requirements.
From the ETL Website
"Heating, ventilation and air conditioning (HVAC) systems control the temperature, humidity and quality of air in buildings to a set of chosen conditions. To achieve this, the systems need to transfer heat and moisture into and out of the air as well as control the level of air pollutants either by directly removing them or by diluting them to acceptable levels.
By considering HVAC systems as individual elements rather than as an interacting system, it would be easy to overlook a major area of energy wastage that one component might impact on another. For example, it would be wasteful to increase heating inside a building whilst the cooling system is fighting to reduce temperatures. It is therefore useful to look at how each element of an HVAC system complements the other and fine tune each part to save energy and money."
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