UK: Guidance on Plant or machinery capital allowances

On 24th August 2018, the Department for Business, Energy & Industrial Strategy has published the ‘Guidance on Plant or machinery capital allowances’. This Guidance provides high level information about plant and machinery tax capital allowances in relation to the Energy Technology List (ETL).

The Enhanced Capital Allowance (ECA) scheme exists to help businesses to invest in energy-saving products from the world-leading Energy Technology List (ETL). The comprehensive list details energy efficient products, including plant and machinery that meet certain set criteria. The scheme allows businesses to write off the entire cost of any product included on the list against taxable profits.

The use of ETL is beneficial for a facility if it wants to:

  • Invest in energy efficient equipment for the business
  • Save money by reducing tax due on its profits
  • Lower overheads and reduce energy bills
  • Build its assets
  • Boost cash flow
  • Reduce its business’ energy consumption and emissions
  • Meet strict environmental legislation requirements

See the Energy Technology Product List for the eligible products in this category, listed by brand name.

Source:

Guidance – Plant or machinery capital allowances, published on the Government webpage on 24th August 2018.