Enhanced capital allowances scheme
New legislation, which came into effect on 8 October 2010, gives statutory effect to the revised lists of qualifying technologies announced on 3rd August 2010.
The Capital Allowances (Energy-saving) Amendment Orders 2010 adds two new sub-technologies to the energy efficient scheme list. These are 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 enhanced capital allowances (ECA) scheme for energy-saving technologies, allows for 100% first year allowances on qualifying expenditure.