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Enhanced Capital Allowance (ECA) Scheme for Business Air Conditioning & Refrigeration Systems

Ask any business or organisation: cash flow matters! Whether you’re retail or corporate, small or large, it’s always on the mind of decision-makers and owners.

Investing is, however, worthy; a study on the value of improving air quality in offices found the annual increase in productivity to be worth at least ten times as much as the annual increase in energy and maintenance costs.

Fortunately for UK businesses, the Enhanced Capital Allowance is here to save the day. In short, it’s a simple way to boost cash flow by securing an accelerated tax relief via investment in machinery and equipment that lowers carbon emissions.

How can the ECA benefit my business?

The Enhanced Capital Allowance (ECA) scheme is a part of the Government's plan to tackle climate change and was introduced to encourage businesses to invest in energy-saving equipment. The scheme can provide your business with enhanced tax relief for investment in equipment that meets certain Government criteria.

As no strangers to the ECA scheme, Royale can help your business navigate its complexities…

Unlike standard capital allowances, the ECA scheme entitles your business to claim 100% of the cost of an eligible air conditioning or HVAC system in the first year, providing that the equipment is on the government-approved list of energy-saving technology (you can view this list on the official government website right here).

Simply put, your business could use the Enhanced Capital Allowance scheme to write off (against profits) the full cost of an eligible air conditioning or refrigeration system in the very same year that system is purchased – great!

The first year’s saving could be as much as £300 for every £1,000 invested. This windfall is a real opportunity to invest in new equipment while slashing energy costs.

Growing concern for the environment

Public concern for climate change is increasing and consumers are increasingly becoming aware of a business’s environmental policies and production methods before deciding to buy, so the timing couldn’t be better for the ECA to be available in full to businesses across the UK.

A customer is statistically more likely to buy from reputable supplier with ‘green’ credentials, so it’s an ideal time to take advantage of the ECA scheme.

Am I eligible for Enhanced Capital Allowance funding?

While the ECA is exciting news for businesses looking to invest in new energy-efficient air conditioning and refrigeration systems, it can be a little daunting to understand. The government has made a guide available online, but the long list of tech and a complicated application process can leave some scratching their heads. Which energy-efficient products are eligible, and are they suitable for my needs?

If you have questions like these, fear not. Royale is experienced on the matter! We regularly consult with businesses on the ECA scheme, helping to craft bespoke HVAC systems that make maximum use of the Enhanced Capital Allowance scheme while still opting for systems and hardware that are suited for each individual project.

I need advice on the ECA scheme. Who can I talk to?

If you’d like advice on how the ECA might apply to your own investment, we’re happy to help at no obligation whatsoever. Simply put, we’re always keen to see an investment in HVAC go well, and even if you’re only looking for brief advice on how to plan your budget around the ECA we’d love to help with that.

You can either call the team at 01635 551446 or email us directly at [email protected].