The first year allowances let businesses set 100% of the cost of the assets against taxable profits in a single tax year. This means the company can write-off the cost of the new plant or machinery against the business’s taxable profits in the financial year the purchase was made. This offers benefits to cash flow and incentivises more premium products hen compared to less efficient alternatives.
An ECA is claimed through a business’s income or corporation tax return in the same way as any other capital allowance. HM Revenue and Customs is responsible for the tax-related aspects of the ECA scheme.
The ETL (or Energy Technology Product List, ETPL) is the list of approved products which are eligible for relief under the ECA scheme such as the Remeha Quinta Pro.
ENGINEERING EFFICIENCY SINCE 1935