Capital Allowances for Renewable Energy Enhanced Capital Allowances (ECA)
Renewable energy systems that are non generating and other energy savings measures are 100% claimable under enhanced capital allowances.
100% of the purchase cost can be written off against the taxable profits within the same year.So not only will the business save a fortune in energy costs it will also reduce the corporation tax bill for the said year. The ECA included Energy Clever technologies are:
Air and Ground Source Heat Pumps
Solar Thermal Systems
Capital allowances For Solar PV, Capital allowances for wind turbines
Following the budget changes in April 2012
The enhanced capital allowances do not apply to Solar PV and Wind Turbine systems as they are generating equipment,not energy saving equipment.
Instead a solar PV or a Wind Turbine system may be claimed under the new annual investment allowance of £25,000 (April 2012, previously £100,000) ) and then under the special rate writing down allowance of 8 % (April 2012 ).