Enhanced Capital Allowance (ECA) - Tax Relief
Whatever the size of your UK organisation, you may be pleased to hear that your investment in lighting from PhotonStar LED may be eligible for an Enhanced Capital Allowance (ECA) tax relief.
The UK Enhanced Capital Allowance (ECA) scheme provides a tax incentive for organisations to select top-performing energy saving products. The tax allowance covers purchase price of the complete system. It may also cover the associated transportation and installation costs – and any professional fees.
You should consult your local tax office.
If you were to install our lighting, you should be able to claim the associated costs as a 100% capital allowance (first-year allowance) against taxable profits in the year. This might save your company 28% of their expenditure in fitting a new lighting system – in addition to the reduction in energy bills and maintenance costs.
From April 2008, even loss-making companies can now benefit from the ECA. They can realise a cash benefit of 19% of the surrendered capital loss associated with the ‘green’ investment – up to a capped maximum.
In order to make an ECA claim, you will need to let us know in writing that you want product(s) that qualify for an ECA. Lighting products are not listed by the Carbon Trust but are covered by a ‘non-listed products’ process. We will confirm that the products to be supplied meet the standards in the relevant Energy Technology Criteria List (ETCL).
For more details, take a look at http://www.hmrc.gov.uk/budget2008/bn14.pdf
We also recommend that you speak to your tax advisor: Mention ECA and CA23100 – PMA: First year allowance (FYA); and CA23140 – PMA: FYA: Expenditure on energy- saving plant or machinery, in particular.