Enhanced Capital Allowance (ECA)

Enhanced Capital Allowance (ECA)


In 2001 the Government introduced the Enhanced Capital Allowance Scheme (ECA) to reward businesses that invest in energy-saving equipment.

Many of the air conditioning systems offered by Blue Sky are listed on ‘The Energy Technology List’ managed by the ‘Carbon Trust’ and incorporate both energy-efficient ‘inverter’ and ‘heat-pump’ technologies.

The scheme enables businesses to offset 100% of their capital expenditure against taxable profits within the same financial year the investment is made. This can deliver a helpful cash flow boost and a shortened payback period.

Enhanced Capital Allowance is not only awarded to the cost of the equipment being installed, but also to the costs associated with installing such technology. This means that the total project cost of installing qualifying systems inclusive of all associated labour and materials costs, becomes 100% tax deductible.

Claims for ECAs are made in the same way as other capital allowance claims i.e. the Corporation Tax Return for companies and the Income Tax Return for individuals and partnerships.

For more details on the Enhanced Capital Allowance scheme browse the links below.

Carbon Trust


Inland Revenue