Enhanced capital allowances
New capital allowances legislation came into force on 7 November 2010. This gives statutory effect to the revised lists of qualifying technologies issued by the Secretary of State for Energy and Climate Change on 28 September 2010.
The special scheme, known as the enhanced capital allowances (ECA) scheme for energy-saving technologies, allows for 100% first year allowances on qualifying expenditure.
The ECA scheme for environmentally beneficial technologies enables a business to claim accelerated tax relief on its spending on qualifying water efficient technologies. The cash-flow benefit of accelerated tax relief is intended to encourage businesses to invest in technologies that reduce water use and improve water quality.