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Enhanced Capital Allowance (ECA)

A capital allowance allows you to write off, over time, the value of an asset against UK corporation tax. An enhanced capital allowance allows the whole value of the qualifying asset to be written off against taxable profit in the first year.

An enhanced capital allowance is not a tax rebate, loan or grant. It is simply a mechanism that improves the asset owner’s cash flow by allowing all the tax relief to be taken in the first year of an asset’s life rather than over a longer period.

Assets that qualify for this treatment include light fittings that exceed certain minimum standards of construction and energy efficiency.

The minimum standards of construction and energy efficiency are defined in this document:

ENHANCED CAPITAL ALLOWANCE (ECA) SCHEME FOR ENERGY EFFICIENT TECHNOLOGIES
ENERGY TECHNOLOGY CRITERIA LIST 2ND JULY 2015

This is published by the Department of Energy and Climate Change and is available from their website.

It is our responsibility, as the manufacturer, to determine which of our fittings qualify for an Enhanced Capital Allowance (ECA). This is easy to do, using the photometric data and knowledge of the construction of the fittings in question. At the customer’s request we can print a certificate that states the relevant data for a fitting and which thereby certifies that it will be eligible for ECA treatment. Contact our technical department on 0121 457 6344 for guidance as to which fittings qualify and if you require a certificate.

In our catalogue we indicate that at least some fittings in a product range qualify for an ECA by the use of this symbol: ECA

Claiming an ECA is the responsibility of the owner of the qualifying asset, typically the end-user. Usually an accountant will do this as he files the end-user’s tax return.