Enhanced Capital Allowance scheme for Chloride Brand UPS (UK only)
The ECA Scheme for Energy Saving Technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behalf of Government.
What's the ECA?
The ECA scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives. The ETL specifies the energy-saving technologies that are included in the ECA scheme.
ECA & uninterruptible power supplies: Chloride Trinergy & Chloride 80-NET
The Chloride Trinergy, Chloride 80-NET and Liebert APM UPS are Carbon Trust ECA listed products. This allows businesses to set 100% of the cost of the UPS against taxable profits in the year of purchase thus reducing their tax bill by 28% of the equipment cost. This effectively represents a 28% reduction in the cost of the UPS system. This may also include other costs directly associated with the UPS including the costs of delivery, installation, project management and professional fees associated with the acquisition of the equipment.
Under the Enhanced Capital Allowance scheme, Chloride Trinergy, Chloride 80-NET and Liebert APM can help organisations improve cash flow and reduce operating costs.
Reduce your operating costs
Businesses are often tempted to opt for equipment with the lowest purchase cost. Such immediate cost savings often prove to be a false economy. Considering the future operating cost of the equipment before investing can help make the right investment decision - one that reduces future expense.
Investing in ETL equipment reduces operating costs. Improved energy efficiency results in lower energy bills, reduced climate change levy payments and shortens payback periods.
Business Tax Return
Capital allowances and ECAs are claimed in a business’s tax return. For tax purposes, your business also needs to keep records of the purchase of plant and machinery, including energy-saving equipment.
Claiming capital allowances and ECAs is straightforward but it’s worthwhile talking to your business’s accountant at an early stage to let them know that your business has incurred qualifying expenditure. The accountant can let you know what records they need you to provide so that they can complete your business’s tax return.Your business can claim an ECA on the cost of qualifying equipment, transportation of the equipment to the site and for direct installation costs.
For more infomation, please visit: www.carbontrust.co.uk
