Speedflex ™ become the first Carbon Trust ECA approved high speed door supplier in the UK.
Until now the Enhanced Capital Allowance (ECA) scheme did not include any high speed door products. This was due to the lack of energy saving information available for this type of product. Speedflex ™ conducted an in-depth study of the use of our individual SF series high speed door products which was successfully accepted as part of the ACA scheme.
This opens new doors for many potential clients in the way of funding the inclusion or replacement of speed door products in their operations. All Speedflex ™ high speed doors can now be offered with the possibility of assistance as part of the scheme.
Enhanced Capital Allowances
Enhanced Capital Allowances (ECAs) are a straightforward way for a business to improve its cash flow through accelerated tax relief. The ECA scheme for energy-saving technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behalf of Government.
The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure. The ETL specifies the energy-saving technologies that are included in the ECA scheme. The scheme allows businesses to write off the whole cost of the equipment against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy-saving equipment which normally carries a price premium when compared to less efficient alternatives.
How it works
So if your business pays corporation tax at 28%, every £1,000 spent on qualifying equipment would reduce its tax bill in the year of purchase by £280. In contrast, for every £1,000 spent, the generally available capital allowance for spending on plant and machinery* would reduce your business' tax bill in the year of purchase by £56. In other words, an ECA can provide a cash flow boost of £224 for every £1,000 it spends in the year of purchase**.
Improve your bottom line
For more information about the scheme, read the ECA scheme for energy-saving technologies brochure (PDF) or visit the ECA website to check the eligibility of equipment via the Energy Technology List (ETL).
Footnotes
* 20% a year on the reducing balance basis.
** ECAs provide 100% tax relief, so there is no further tax relief in later years. The general rate of capital allowances does not provide 100% tax relief so there is a balance of spending to carry forward on the reducing balance basis for relief in later years.