What are Capital Allowances?
Whenever a company makes a capital purchase it is allowed, under Inland Revenue rules, to write off the full purchase price against tax. This write-off is normally spread over a number of years depending upon the asset purchased and its expected service life.

And Enhanced Capital Allowances?
Enhanced Capital Allowances (ECAs) enable businesses to claim 100% first year capital allowances on qualifying investments. Since 2001, ECAs have been available for investments in energy-saving equipment.

Qualifying Products
Products eligible for ECAs are published in the Energy Technology Product List. Lighting control equipment constitutes one of the qualifying product categories. All Ex-Or energy-saving lighting controls and associated equipment qualify. Installation charges and any changes to the building needed to install the controls also qualify for relief.

Claims Procedure
Claims for ECAs are made in the same way as other capital allowances on the Corporation Tax Return. For more details see www.hmrc.gov.uk

Further Details
Further information can be found at www.eca.gov.uk/etl and www.thecarbontrust.co.uk