Money Matters
Financial assistanceThe Carbon Trust
The ECA scheme interest-free loans and assist you in completing your application. We can partially complete a loan application on your behalf and forward it to you for final completion and approval, prior to it being submitted to the Energy-Efficiency Loans Scheme team. Find out more at www.carbontrust.co.uk/loans
The ECA tax relief scheme available to all companies
The ECA (Enhanced Capital Allowance) scheme is available to all companies and could be of benefit in reducing time to your payback by taking advantage of 100% relief on taxable profits where the money is invested in eligible energy saving capital equipment such as LED luminaires, and includes installation.
So if your business pays corporation tax at 28%, every £1,000 spent on qualifying equipment would reduce your tax bill in the year of purchase by £280. In contrast, for every £1,000 spent, the generally available capital allowance for spending on plant and machinery1 would reduce your business's tax bill in the year of purchase by £56. In other words, an ECA can provide a cash flow boost of £224 for every £1,000 it spends in the year of purchase.2
1 20% a year on the reducing balance basis.
2 ECAs provide 100% tax relief, so there is no further tax relief in later years. The general rate if capital allowances does not provide 100% tax relief so there is a balance of spending to carry forward on the reducing balance basis for relief in later years.