UPDATE: In the 2018 UK Budget it was announced that the Enhanced Capital Allowance Scheme will end in April 2020.
The Energy Technology List will continue to be available for companies wishing to identify energy saving products.
As described in our previous post, companies buying energy efficient equipment in the UK can claim a significant tax break by choosing products that are on the Carbon Trust’s Energy Technology List (ETL).
The Carbon Trust is constantly updating the ETL and has recently engaged in efforts to highlight the benefits of the scheme to manufacturers & purchasers of energy efficient products.
Tax Relief for Energy Technology List Products via the Enhanced Capital Allowance Scheme
The Enhanced Capital Allowance Scheme (ECA) is a first year allowance that lets UK businesses set 100% of the cost of ETL listed products against taxable profits in the year of purchase. This is equivalent to 5.5 times the benefit of standard tax relief in the year of purchase.
The ECA is claimed through the company’s income or corporation tax return in the same way as any other capital allowance.
There are nearly 17,000 products listed on the ETL, split into the following categories:
- Air to air energy recovery
- Automatic monitoring and targeting (AMT) equipment
- Boiler equipment
- Combined heat and power (CHP)
- Compressed air equipment
- Heat pumps
- Heating, ventilation and air conditioning (HVAC) equipment
- High speed hand air dryers
- Lighting
- Motors and drives
- Pipework insulation
- Refrigeration equipment
- Solar thermal systems
- Uninterruptible power supplies
- Warm air and radiant heaters
- Waste heat to electricity conversion equipment
Products listed on the ETL
Products listed on the ETL can be found by searching the appropriate product category
Automatic Monitoring and Targeting Systems such as our AtlasEMS Energy Management System are handled slightly differently. No aM&T systems are listed on the ETL itself but, when used as part of a complete automatic monitoring & targeting system they still qualify for an Enhanced Capital Allowance (ECA).
For more information on the ETL & ECA scheme please see;
https://www.gov.uk/guidance/energy-technology-list
https://www.carbontrust.com/etl/
And for specific Automatic monitoring and targeting (AMT) equipment details;
https://www.gov.uk/……-automatic-monitoring-and-targeting-amt-equipment-and-systems