Enhanced Capital Allowance Scheme

The Enhanced Capital Allowance (ECA) scheme is a key part of the Government’s programme to manage climate change, and is designed to encourage businesses to invest in energy-saving equipment.

What does the ECA Energy scheme involve?

The scheme provides a tax incentive to businesses that invest in equipment that meets published energy-saving criteria.

The Enhanced Capital Allowance (ECA) scheme can bring significant financial savings, in the short and long-term, as well as improving a company’s energy-efficiency and its impact on the environment.

An immediate cash-flow boost

An ECA provides 100% tax relief on any investment in energy-saving equipment, in the same tax year as the purchase is made. This means a business paying corporation tax at 28% will receive 28p tax relief for every £1 invested in energy-saving products.

The scheme is open to all businesses that pay UK corporation or income tax, regardless of size, sector or location and provides 100% first-year capital allowances on investments in energy-saving equipment against taxable profits of the period of investment.

Visit www.eca.gov.uk for more information about the Enhanced Capital Allowance Scheme.