Energy-saving kit offers tax benefit
© Rex The government has announced plans for a number of changes to the energy saving technologies that qualify for enhanced tax relief from later this year.
Chancellor George Osborne confirmed in last month’s budget that from this summer/early autumn there would be a number of changes to the list of technologies that qualify for Enhanced Capital Allowances – the so-called Energy Technology Criteria List (ETCL).
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Any business that pays income or corporation tax can claim 100% first year capital allowance on a product in the same year the equipment is bought, provided the product is on the approved list at the time of purchase. The list is managed by the Carbon Trust.
Waste heat energy recovery has been added to the draft ETCL, while qualifying criteria for other technologies, including air to water heat pumps, high-efficiency lighting and packaged chillers are being updated.
A consultation on the proposed changes has been launched and closes on 20 April.