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 www.eca.gov.uk .
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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