27 January 2012
 HMRC have announced an upcoming change to how Enhanced Capital Allowances (ECAs) can be received alongside other subsidies.
The ECA scheme gives 100% tax relief on a business’s qualifying capital expenditure in the first year of a technology’s installation, offering businesses a cash flow boost and a big incentive to invest in energy-saving equipment.
From April 2012 (or April 2014 for CHP installations), it won’t be possible to claim ECAs for the purchasing of installations for which tariff payments from other energy incentive schemes will also be given.
This means that, if you are claiming payments under the Renewable Heat Incentive (RHI) scheme or the Feed-in Tariff (FiT) scheme for an installation which is one of the energy-saving technologies specified under the ECA scheme, you won’t be able to claim ECAs in addition.
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