Energy Efficiency & Capital Allowances

Last year we installed some new handwashing facilities along with water heaters to supply hot water to them.  At the time the supplier said I would be entitled to get some extra tax relief as the heaters were new efficient ones.  Can you shed any light on what the supplier meant?

1st November 2008

In 2001, the government introduced a scheme which allows businesses investing in qualifying energy saving plant and machinery investments to reclaim 100% Capital allowances on the expenditure incurred.

Various types of expenditure qualify for the 100% allowance, providing they meet the required energy-saving standards as outlined by the Enhanced Capital Allowances scheme. To see if your item qualifies for the increased allowance visit .

Each year the government adds further items to this list in their annual budget update so itís worth checking whether any plant and machinery items you are purchasing qualify. Your accountant will be able to advise you further.

By Jo Nockels

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