Enhanced capital allowances – tax incentives for energy and water-saving technologies
The Government’s enhanced capital allowances (ECAs) scheme is designed to incentivise investment in energy and water saving plant and machinery.
Furthermore, with the introduction of minimum energy efficiency standards (“MEES”) in 2018, landlords with EPC sub standard properties will be prohibited from agreeing to a new lease without first bringing the property up to the minimum standard. Although mandatory, minimum energy efficiency standards also provide an opportunity to improve the desirability and therefore the rental and disposal value of your assets.
How we can help
Our enhanced capital allowances service is cash-generative and with a focus on maximising qualifying expenditure can have a significant impact on your cash flow. Whilst not the primary basis for construction design, our involvement at design stage brings an awareness of the opportunity to improve the tax efficiency of the construction project.
Since they present a very generous incentive, HMRC is discerning when they receive valuations. They are much more likely to challenge a tax return that does not include comprehensive support documentation. We ensure submissions for capital allowances are transparent and include fully supporting documentation. We manage the entire submission process from initial design stage through to completion, bringing all the relevant expertise, experience and a proactive skill set.