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Don't pay tax - fit air conditioning
Climate Change Levy
Emissions of greenhouse gases are affecting the global climate. One of the principal elements in climate change is carbon dioxide emissions resulting from the burning of fossil fuels, such as gas and coal, either as a primary energy source or to generate electricity. The Climate Change Levy is a tax on energy use. All United Kingdom businesses and public sector organisations pay the levy, via their energy bills
What is the Energy Technology List?
The Energy Technology List details over 4,000 products meeting published energy-saving criteria. It is designed to help businesses identify energy efficient equipment that is supported by the scheme for 100% first-year enhanced capital allowances (ECA). The ECA scheme provides up-front tax relief for businesses that invest in designated energy efficient equipment. For spending to qualify for ECAs the equipment must be listed on the Energy Technology List when the spending is incurred.
What are the benefits?
• Products listed on the Energy Technology List are energy efficient, resulting in significant long-term financial benefits. .
• In addition, investment in products listed on the Energy Technology List may alsoqualify for an Enhanced Capital Allowance, a tax relief that permits businesses to deduct 100% of capital expenditure against their taxable profits. This can deliver a helpful cash flow boost and shorten the payback period on the investment.
• Investing in energy efficient technologies reduces energy costs, Climate Change Levypayments and climate change impact
Which energy efficient technologies qualify?
From the 5 August 2003, the technologies supported are:
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Automatic monitoring and targeting equipment
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Boilers and boiler add ons
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Combined heat and power
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Compressed air equipment
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Lighting
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Motors
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Pipe insulation
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Refrigeration equipment
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Solar thermal systems
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Thermal screens
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Variable speed drives
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Warm air and radiant heaters
You may not be aware that this tax relief also covers:
* Installation costs
* Professional fees
* Costs of altering an existing building
e2 are certified to install heat pumps that allow the organisation to claim back the cost of implementing the system via the Enhanced Capital Allowance scheme.
How to Claim for ECAs
Claims for ECAs are made in the same way as other capital allowances for the Corporation Tax Return for companies and the Income Tax Return for individuals and partnerships.
The Inland Revenue's guidance on the ECA scheme can be found at:
www.inlandrevenue.gov.uk/capital_allowances/eca_guidance.htm
Claims must be based on the costs incurred. Where you have purchased a qualifying product that is not already incorporated into a larger item of plant and machinery, you must use the price paid for the item as the base of your claim. If you have purchased a qualifying product, which is incorporated into a larger piece of equipment, the eligible claim value is provided in the Claim Values section of this site. The remainder of the equipment can attract capital allowances at the normal (rather than the Enhanced) rates.
For further information on enhance capital allowances please use thr links below.
Info On Claiming
ECA FAQ's
Information On Claim Values
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