Enhanced Capital Allowance scheme - Revision history

Editor at 17:37, 12 January 2024

2024-01-12T17:37:37Z

← Older revision		Revision as of 17:37, 12 January 2024
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−	Enhanced Capital Allowance (ECA) legislation was introduced by the Government in 2001, creating a scheme that allows businesses to write off the entire cost of any product included on the Energy Technology List (ETL) against taxable profits.	+	= Inception =

−	The aim of the scheme is to encourage businesses to invest in energy-saving plant or machinery included on the ETL, as well as low CO2 emission cars, natural gas and hydrogen refuelling infrastructure, and water conservation plant and machinery.	+	Enhanced Capital Allowance (ECA) legislation was introduced by the Government in 2001, creating a scheme that allowed businesses to write off the entire cost of any product included on the Energy Technology List (ETL) against taxable profits.
		+
		+	= Closure =
		+
		+	In October 2018, the Chancellor announced that the ECA and First Year Tax Credits Scheme (FYTC) would end from April 2020 for products on the ETL. This ETL publication has since been updated to remove references to the ECA.
		+
		+	= Background =
		+
		+	The aim of the scheme was to encourage businesses to invest in energy-saving plant or machinery included on the ETL, as well as low CO2 emission cars, natural gas and hydrogen refuelling infrastructure, and water conservation plant and machinery.

	The Carbon Trust manages the ETL on behalf of the government. It is made up of two lists – the Energy Technology Criteria List (ETCL), which specifies the energy-saving performance criteria that scheme-qualifying equipment must meet, and the Energy Technology Product List (ETPL), which is a register of products that are compliant with the ETCL criteria.		The Carbon Trust manages the ETL on behalf of the government. It is made up of two lists – the Energy Technology Criteria List (ETCL), which specifies the energy-saving performance criteria that scheme-qualifying equipment must meet, and the Energy Technology Product List (ETPL), which is a register of products that are compliant with the ETCL criteria.
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	By being able to write off the entire cost of equipment against taxable profits in the first year of its purchase, the scheme provides businesses with an incentive to invest in energy-saving equipment, as this can sometimes have a price premium compared to less efficient alternatives. In addition, it can provide businesses with a cash flow boost.		By being able to write off the entire cost of equipment against taxable profits in the first year of its purchase, the scheme provides businesses with an incentive to invest in energy-saving equipment, as this can sometimes have a price premium compared to less efficient alternatives. In addition, it can provide businesses with a cash flow boost.

−	Find out more about the scheme: [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies]	+	Find out more about the scheme: [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies#full-publication-update-history https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies#full-publication-update-history]

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Capital.		* Capital.

Designing Buildings at 07:08, 28 December 2020

2020-12-28T07:08:03Z

← Older revision		Revision as of 07:08, 28 December 2020
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	* Water technology list.		* Water technology list.

−	[[Category:~~Policy~~]] [[Category:DCN_Policy]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]]

Editor at 17:04, 15 March 2019

2019-03-15T17:04:26Z

← Older revision		Revision as of 17:04, 15 March 2019
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	Find out more about the scheme: [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies]		Find out more about the scheme: [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies]

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

		+	* Capital.
	* Capital allowances for construction.		* Capital allowances for construction.
	* Construction plant.		* Construction plant.
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	* Water technology list.		* Water technology list.

−	[[Category:Policy]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]]	+	[[Category:Policy]] [[Category:DCN_Policy]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]]

Designing Buildings at 08:39, 19 December 2017

2017-12-19T08:39:34Z

← Older revision		Revision as of 08:39, 19 December 2017
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−	Enhanced Capital Allowance (ECA) legislation was introduced by the Government in 2001, ~~to introduce~~ a scheme that allows businesses to write off the entire cost of any product included on the Energy Technology List (ETL) against taxable profits.	+	Enhanced Capital Allowance (ECA) legislation was introduced by the Government in 2001, creating a scheme that allows businesses to write off the entire cost of any product included on the Energy Technology List (ETL) against taxable profits.

−	The aim of the scheme is to encourage businesses to invest in ~~the~~ energy-saving plant or machinery ~~that is specified~~ on the ETL, ~~in addition to~~ low CO2 emission cars, natural gas and hydrogen refuelling infrastructure, and water conservation plant and machinery.	+	The aim of the scheme is to encourage businesses to invest in energy-saving plant or machinery included on the ETL, as well as low CO2 emission cars, natural gas and hydrogen refuelling infrastructure, and water conservation plant and machinery.

	The Carbon Trust manages the ETL on behalf of the government. It is made up of two lists – the Energy Technology Criteria List (ETCL), which specifies the energy-saving performance criteria that scheme-qualifying equipment must meet, and the Energy Technology Product List (ETPL), which is a register of products that are compliant with the ETCL criteria.		The Carbon Trust manages the ETL on behalf of the government. It is made up of two lists – the Energy Technology Criteria List (ETCL), which specifies the energy-saving performance criteria that scheme-qualifying equipment must meet, and the Energy Technology Product List (ETPL), which is a register of products that are compliant with the ETCL criteria.

−	By being able to write off the entire cost of equipment against taxable profits in the first year of its purchase, the scheme provides businesses with an incentive to invest in energy-saving equipment, as this can ~~ordinarily~~ have a price premium ~~in comparison with~~ less efficient alternatives. In addition, it can provide businesses with a cash flow boost.	+	By being able to write off the entire cost of equipment against taxable profits in the first year of its purchase, the scheme provides businesses with an incentive to invest in energy-saving equipment, as this can sometimes have a price premium compared to less efficient alternatives. In addition, it can provide businesses with a cash flow boost.

−	~~To find~~ out more about the scheme~~, see~~ [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies ~~here]~~.	+	Find out more about the scheme: [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies]

	= Find out more =		= Find out more =

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2017-12-18T11:41:52Z

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Enhanced Capital Allowance (ECA) legislation was introduced by the Government in 2001, to introduce a scheme that allows businesses to write off the entire cost of any product included on the Energy Technology List (ETL) against taxable profits.

The aim of the scheme is to encourage businesses to invest in the energy-saving plant or machinery that is specified on the ETL, in addition to low CO2 emission cars, natural gas and hydrogen refuelling infrastructure, and water conservation plant and machinery.

The Carbon Trust manages the ETL on behalf of the government. It is made up of two lists – the Energy Technology Criteria List (ETCL), which specifies the energy-saving performance criteria that scheme-qualifying equipment must meet, and the Energy Technology Product List (ETPL), which is a register of products that are compliant with the ETCL criteria.

By being able to write off the entire cost of equipment against taxable profits in the first year of its purchase, the scheme provides businesses with an incentive to invest in energy-saving equipment, as this can ordinarily have a price premium in comparison with less efficient alternatives. In addition, it can provide businesses with a cash flow boost.

To find out more about the scheme, see [https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-for-energy-saving-technologies here].

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Capital allowances for construction.
* Construction plant.
* Depreciation.
* ECA Water Scheme.
* Equipment.
* Net Present Value.
* Water technology list.

[[Category:Policy]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]]