Guide

Enhanced Capital Allowances for efficient technologies

Introduction

You can claim capital allowances when you buy things like equipment, machinery or business vehicles that you keep to use in your business. You can deduct some or all of the value of such plant and machinery items from your profits before you pay tax.

The Enhanced Capital Allowance (ECA) scheme offers a 100 per cent first-year allowance for investments in certain water efficient plant and machinery. It lets businesses write off 100 per cent of the cost of qualifying plant and machinery against taxable profits in the year of purchase. This can bring significant financial savings and reduce your business' impact on the environment.

This guide will help you understand how the ECA schemes for energy saving products and water efficient technologies work, what qualifies for an ECA and how to claim.