Enhanced Capital Allowance Scheme

The Enhanced Capital Allowance scheme has been put in place by the Carbon Trust as an incentive to companies who want to actively lower their energy usage and carbon footprint, it provides up front tax relief for companies who invest in energy efficient equipment.

The comparison below shows how purchasing ECA listed refrigerated cabinets can show significant tax savings, as well as helping to save the environment.

 

STANDARD CAPITAL ALLOWANCE

ENHANCED CAPITAL ALLOWANCE

Equipment costs (inc installation & commissioning)

£10,000

£10,000

% of expenditure to which allowance applies

20%

100%

Taxable amount reduced by

£10,000 x 20% = £2,000

£10,000 x 100% = £10,000

1st year saving on taxable profits (Corporation tax @ 28%)

28% of £,2000 = £560

28% of £10,000 = £2,800

2nd year saving

28% corp. Tax on 20% of the remaining amount of

£8,000 = £448

£0

3rd year saving

28% corp. Tax on 20% of the remaining amount of

£6,400 = £358:40

£0

4th year saving

28% corp. Tax on 20% of the remaining amount of

£5,120 = £286:72

£0

5th year saving

28% corp. Tax on 20% of the remaining amount of

£4,096 = £229:35

£0

Total saving on taxable profit over 5 years

£1,882:50

£2,800

Difference in tax savings

£917:50 more saved on the ECA Scheme

 

 

Based upon a total capital spend of £10,000, the Enhanced Capital Allowance Scheme shows a first year saving on taxable profits of £2,800! £917:50 more than would be allowed on the Standard Capital Allowance scheme and you don’t have to wait 5 years to be able to claim it!

To show our commitment to the environment, Alpine Cooling UK Ltd have put their ALPINE
“Prague Maxi Slim” & “Prague Super-Slim” remote multidecks through strict, independent energy
efficiency testing to ensure that they are the most efficient they can be. Having passed the testing
process, ALPINE “Prague Maxi Slim” & “Prague Super-Slim” cabinets are now on the “Equipment
Technology List” (ETL) of approved commercial refrigerated cabinets.

Remember that only products on the “ETL” are eligible for the “ECA” scheme! ALPINE “ECA” remote
multidecks can save your customer money on their energy bills, show tax savings and help SAVE THE PLANET! You can find out more about the “ECA” scheme from the official website www.eca.gov.uk