Budget 2009 – Enhanced capital allowances
Changes have been announced to the enhanced capital allowance (ECA) regime for businesses that purchase designated plant and machinery which is energy efficient and reduces water usage or improves water quality.
The energy efficient scheme list will be updated to include one new technology (uninterruptible power supplies) and two new sub-technologies (air to water heat pumps and close control air conditioning systems).
Three existing sub-technologies (air source: single duct and packaged double duct heat pumps, ground source: brine to air heat pumps and water source: packaged heat pumps) will be removed. Some minor changes will also be made to the existing criteria of both schemes.
Qualifying expenditure on plant and machinery benefits from a 100% first year allowance.
The changes will take effect from a date to be announced during Summer 2009.