Enhanced Capital Allowance scheme
Contents |
[edit] Inception
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.
[edit] 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.
[edit] 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.
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#full-publication-update-history
[edit] Related articles on Designing Buildings
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.