Financial Incentives

The Enhanced Capital Allowance (ECA) scheme, which is government initiative to allow tax relief on investment in energy efficient equipment. Aspen can provide you with energy efficient equipment that not only reduces your tax bill but your temperature. Below is recently published Article on the ECA Scheme. If you have ANY questions, please do not hesitate to contact us.

Tax

Any business that pays income tax and corporate tax, and is looking to install heat pump air conditioning, can claim 100% tax relief in the first year on specific energy-saving products and technologies through the Enhanced Capital Allowance (ECA) scheme. Some businesses are not aware it exists and those that are, may feel it is too complicated to claim The ECA is a government led initiative, run by the Carbon Trust and the Department for Environment, Food and Rural Affairs. The aim is to help businesses fit more energy efficient equipment and so reduce the UK's carbon dioxide emissions as part of its commitment to the Kyoto Protocol. Previously, a business could only claim 25% of the capital expenditure on a project in the first year and 25% on the reducing balance in subsequent years - about 95% tax relief is claimed after eight years. By allowing 100% relief in the first year, a business's cash flow is improved significantly by the reduction in its tax bill.

Claims

Claims for ECA’s should be submitted in the same way as other capital allowances on the Corporation Tax Return for companies, and the Income Tax Return for self-employed and partnerships. End-users should notify their tax advisor if they have purchased a qualifying system and retain the invoice. For more information on how MAGTECH air conditioning can meet a wide range of air conditioning needs and advice for companies that wish to take advantage of the Enhanced Capital Allowance, telephone 0800 321 30 95.

Government

When brought in by the Government in 2001, the Energy Technology List of products (ETL) did not include whole air conditioning systems. The only relevant product was the 'variable speed or inverter drive’, which forms part of some systems. This meant that in a £5,000 installed system for example, the end user may only have been able to claim around £800 under the ECA scheme, as this was the value of the inverter drive part. Also, not all air conditioning manufacturers arranged for their products to be listed, which made the scheme less valuable to contractors and end- users.

This may have put off many customers who are now not aware that the criteria has changed. At MAGTECH Air Conditioning, we recognise which of our customers can qualify for ECA and help them claim their whole installation costs.

The ETL is constantly changing as new products are added and as the energy efficiency threshold is raised, old products are removed. Eligible equipment includes heat pumps for space heating, air-to-air energy recovery, combined heat and power, compact heat exchangers, HVAC zone controls and variable speed drives.

Some of our clients