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
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
International Electrician Day, 10 June 2025
Celebrating the role of electrical engineers from André-Marie Amperè, today and for the future.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.
Skills England publishes Sector skills needs assessments
Priority areas relating to the built environment highlighted and described in brief.
BSRIA HVAC Market Watch - May 2025 Edition
Heat Pump Market Outlook: Policy, Performance & Refrigerant Trends for 2025–2028.
Committing to EDI in construction with CIOB
Built Environment professional bodies deepen commitment to EDI with two new signatories: CIAT and CICES.
Government Grenfell progress report at a glance
Line by line recomendation overview, with links to more details.
An engaging and lively review of his professional life.
Sustainable heating for listed buildings
A problem that needs to be approached intelligently.
50th Golden anniversary ECA Edmundson apprentice award
Deadline for entries has been extended to Friday 27 June, so don't miss out!
CIAT at the London Festival of Architecture
Designing for Everyone: Breaking Barriers in Inclusive Architecture.
Mixed reactions to apprenticeship and skills reform 2025
A 'welcome shift' for some and a 'backwards step' for others.