Have you made use of enhanced capital allowances?
In a growing eco-conscious society, people and businesses are striving to find new technologies to help towards a greener future. Businesses who participate in more energy efficient and sustainable technologies are not only helping the environment and appealing to their stakeholders, but are rewarded for these efforts when it comes to filing their tax return.
Introduced by the government in 2001, enhanced capital allowances are a way to encourage businesses to go greener by offering tax savings on energy efficient, or low or zero-carbon technology. When you purchase any of the qualifying items, the full cost can be deducted from your profits before tax without affecting your AIA (Annual Investment Allowance). But what qualifies?
Some of the qualifying items you’re probably aware of, such as low emission or zero emission cars. However, there are also tax savings to be had with energy and water efficient technologies which are most likely to be found in your staff bathroom – such as buying new efficient taps and toilets, and energy efficient hand dryers.
To find out which items can offer you this tax saving, visit GOV.UK using the following links where a full list of qualifying items is available:
- The Energy Technology products list published in 2014. https://www.gov.uk/government/publications/enhanced-capital-allowance-scheme-energy-technology-product-list
- And The Water Efficient Technologies products list updated just March of this year. https://www.gov.uk/government/publications/water-efficient-enhanced-capital-allowances