Enhanced capital allowances
A number of changes that have been announced to the availability of enhanced capital allowances for energy-saving and water efficient technologies will take effect from 8 October 2010.
The new capital allowances order will give statutory effect to the revised lists of qualifying technologies issued by the Secretary of State for Energy and Climate Change on 3rd August 2010.
Two new sub-technologies are being added to the energy efficient scheme list, namely permanent magnet synchronous motors and biomass warm air heaters. In addition, one existing technology, compact heat exchangers will be removed from the list of qualifying technologies.
The special scheme, known as the enhanced capital allowances (ECA) scheme for energy-saving technologies, allows for 100% first year allowances on qualifying expenditure.