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Climate Change Levy |
Date
: Updated Nov 2008 |
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.
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. Lighting control equipment constitutes one of the qualifying product categories and therefore all Ex-Or energy-saving lighting management systems are included.
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
: Updated Nov 2008 |
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
For Further Details
Further information can be found at www.eca.gov.uk/etl and www.thecarbontrust.co.uk |
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Interest-Free Energy-Efficiency Loans from the Carbon Trust |
Date
: Updated Nov 2008 |
The Carbon Trust offers interest-free loans for energy-efficiency projects. Loans of between £5,000 and £200,000, repayable over a period of up to four years, are available to Small and Medium sized Enterprises (SMEs) in England and Scotland, or all businesses in Wales* that have been trading for at least 12 months.
All businesses based in Northern Ireland* that have been trading for at least 12 months may be eligible to apply for an unsecured interest-free loan of up to £400,000.
Any project that can demonstrate a minimum energy saving of 2.57 t CO2 per £1,000 of loan (subject to a minimum loan value £5,000) may qualify. Installation and commissioning costs can be included, not just the capital cost of the equipment. The objective is for the energy savings to cover the cost of the project over the course of the loan.
For futher information visit www.carbontrust.co.uk or call their Customer Centre on 0800 085 2005.
*Subject to eligibility. Regional variations apply. |
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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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