ECA

Enhanced Capital Allowance scheme

The ECA scheme means that a business can invest in energy-saving plant or machinery that might otherwise be too expensive.

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.

Energy Technology List

If you’re a business that pays income or corporation tax, you’ll be able to claim 100% first year capital allowance on a product if it’s on the ETL at the time of purchase.

The ETL is a government-managed list of energy-efficient plant and machinery, such as boilers, electric motors, and air conditioning and refrigeration systems that qualify for full tax relief.  It is part of the Enhanced Capital Allowance (ECA) tax scheme for businesses.