100% Tax Relief On Selected Water Efficiency Products

What is the Enhance Capital Allowance Scheme?

Provides 100% First Year Enhanced Capital Allowance Scheme on water saving and water improving technologies.

Key Features of the Scheme

Under the ECA Scheme all businesses which pay corporation or income tax will be able to claim 100% first year allowance on the purchase of selected water & energy saving products regardless of size, industrial or commercial sector or location. ECA Allowances are not only available on the capital cost of the CWC equipment but also on installation and delivery costs of the equipment.

What are Capital Allowances?

Capital Allowances allow the cost of capital assets such as our shower units and washroom facilities to be written off against businesses taxable profits. They take the place of depreciation charged in commercial accounts which is not allowed. The main rate of capital allowance for expenditure on most plant and machinery is 25% per year on a reducing balance.

What are Enhanced Capital Allowances?

First Year Capital Allowances (FYA) is the name given to specially increased rates of allowance. They are sometimes called Enhanced Capital Allowances (ECA). FYA allow a greater proportion of the cost of an investment to qualify for tax relief against businesses taxable profits of the period during which the investment is made and can provide a helpful cash flow boost. The ECA Scheme of water efficient technologies provides 100% FYA's for spending on designated equipment such as our shower mixer kits.

How much is the ECA Worth to my Business?

The benefit of ECA's is dependent on your business having sufficient profits for the allowance to be written off against and the rate at which your business pays tax. Assuming that a business pays tax at 30% Corporation Tax rate in the year of investment.

  • Capital Allowances at the generally available rate can reduce a tax bill by £7.50 for every £100 spent
  • Enhanced Capital Allowance can reduce a tax bill by £30 for every £100 spent as all the tax relief is given up front

    • Which products are included on the ECA Scheme?

    All units that have ECA Water Technology Approved Logo are eligible for the Enhanced Capital Allowance Scheme.