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Climate Change Levy |
Date
: August 2003 |
The Climate Change Levy (CCL) was launched in April 2001. It consists of an additional charge on energy usage and applies to all UK businesses and the Public Sector. The CCL is designed to encourage energy efficiency in business and to help the UK meet its internationally agreed targets for the reduction of ‘greenhouse gas’ emissions.
The CCL is added to energy bills at source; a surcharge of 0.43p/kWh is added for electricity. Electricity costs have increased with the CCL by 8% for most businesses.
Some energy-intensive sectors of industry have negotiated (via their trade associations) exemption from, or a reduction in, the charge. These exemptions were granted in return for undertakings to meet lower energy consumption/greenhouse gas emission targets. Failure to meet these targets, however, can result in the loss of the concession and render such industries liable for the full CCL surcharge.
On the positive side, measures designed to encourage the adoption of energy-efficient technologies have also been introduced. One such measure is the Enhanced Capital Allowance (ECA) scheme. The Government has published a list of approved technologies and products qualifying for ECAs. Ex-Or lighting management systems are included on this list of qualifying capital equipment.
Ex-Or is able to offer an up-to-date assessment of the impact of the CCL on any organisation. Ex-Or’s service includes the supply and installation of various lighting management systems incorporating presence detectors and photocell control. The equipment may also be used to supply occupancy information to the main Building Management System and therefore provide more cost-effective control of HVAC plant. Ex-Or offer the service of a free survey - followed by a project report containing recommendations and costs - for sites throughout the UK. |
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Enhanced Capital Allowances and Ex-Or Equipment |
Date
: August 2003 |
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.inlandrevenue.gov.uk
For Further Details
Responsibility for managing, promoting and monitoring the ECA scheme has been assumed by the Carbon Trust. The Carbon Trust was set up in April 2001 to encourage UK businesses and industry to adopt low carbon technologies and energy-efficient practices. Further information can be found at www.thecarbontrust.co.uk and www.eca.gov.uk |
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Energy-Efficiency Loans from the Carbon Trust |
Date
: June 2006 |
The Carbon Trust offers interest-free loans for energy-efficiency projects. Loans of between £5,000 and £100,000, repayable over four years, are available to Small and Medium sized Enterprises (SMEs) in England and Wales* that have been trading for at least 12 months.
Any project that saves energy and has a payback of less than 5 years may qualify. Installation and commissioning costs can be included, not just the capital cost of equipment. The objective is for the energy savings to cover the cost of the project over the course of the loan.
For further details and full eligibility criteria contact the Carbon Trust Helpline:
0800 085 2005 or visit www.carbontrust.co.uk/loans
* A similar scheme, Loan Action Scotland, operates in Scotland. For more information visit www.energy-efficiency.co.uk |
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Ex-Or
Limited, Haydock Lane, Haydock, Merseyside, WA11 9UJ
Tel : +44 (0) 1942 719229 | Fax +44 (0) 1942 272767
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