Unless you’ve had your head in the sand for the last decade, you will have heard about the threat of climate change.
It’s vital that we offset the effects by investing in energy efficiency.
Daunting? Don’t worry, you’re not without support.
Introduced to encourage business investment in the environment, Enhanced Capital Allowances (ECAs) provide advanced tax relief for spending on energy and water efficient equipment.
By implementing products listed on the Energy Technology Product List (ETPL), ECAs provide 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.
If the equipment isn’t on the ETPL, or doesn’t meet the relevant criteria, a company can claim is 20% tax relief, which works out at 5.6p for every £1. So, in effect, an ECA provides a cash-flow boost of 22.4p for every pound invested.
It isn’t all doom and gloom.
Invest in the correct products and aside from the energy-saving payback you’ll get from reduced energy usage, you’ll be gifted money back on your investments.
Win, win.
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During October ecex are looking at insulation and how a simple upgrade can improve efficiency greatly. Take a look at http://www.ecex.co.uk/insulation.asp and contact the sales office sales@ecex.co.uk for a free survey.
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