Overview of GUIDE to Enhanced Capital Allowance (ECA)
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The Enhanced Capital Allowance (ECA) scheme is designed to encourage UK businesses to reduce carbon emissions by encouraging them to purchase Carbon Trust approved energy-saving equipment.
As an incentive to invest in energy efficient products ECA allows businesses to deduct 100% of the cost of the qualifying equipment from their tax bill in the first year.
Enhanced Capital Allowance is only available to an end user who pays company tax. Government establishments, NHS, MOD and schools are not included in the scheme.
Benefits to the retailer:
- As an incentive to invest in energy efficient products ECA allows businesses to deduct 100% of the cost of the qualifying unit from their tax bill in the first year
- ECA qualifying units are certified as energy efficient and should produce long term financial benefits by reducing energy bills
- Loans are also available to help upgrade existing refrigeration units with more energy efficient equipment. Loans and ECA can be used together.
For full details on enhanced capital allowance visit www.eca.gov.uk
For information on loans visit www.carbontrust.co.uk/loans
Enhanced capital allowance is claimed on your business tax return. 
