As part of a package of measures aimed at reducing greenhouse gas emissions the Government has introduced the Enhanced Capital Allowance Scheme.
The scheme is open to all business users and provides a ‘tax incentive’ for customers who select energy efficient plant. The scope of the scheme extends to warm air heaters of the type promoted by Benson Heating.
THE ENHANCED CAPITAL ALLOWANCE SCHEME
Scope
If a user chooses to select energy efficient heating plant then they may be eligible for an Enhanced Capital Allowance. Broad details of the scheme are -
The scheme allows a 100% first year capital allowance
It embraces a wide range of energy consuming capital plant including spaceheating equipment and controls.
The energy consuming capital plant should have efficiencies higher than current industry standards
We understand that the scheme covers the cost of the capital plant, the associated installation costs, transportation, relevant professional fees and in some case building alterations specifically necessitated by the selection of qualifying energy efficient plant.
Product Eligibility Criteria
To qualify warm air heaters must have a minimum nett combustion efficiency of 91% .
The efficiency levels are required to be verified by an independent ‘approved body’.
How Can Benson Help
The 100% first year capital allowance can be a significant benefit for your customers. Up to now Inland Revenue criteria allow capital plant to be depreciated at a rate of 25% per year on the reducing balance. In practice this means that it takes more than 8 years for your customer to depreciate the full value of a capital purchase.
Under these new rules an eligible capital purchase can be 100% written-off within the year of purchase, commensurately reducing the customers corporation tax bill for that year, freeing cash for other purposes and improving cash flow.
To qualify your customer will need to apply directly to Government . Application procedures and further details can be found on the Enhanced Capital Allowance website www.eca.gov.uk
BENSON QUALIFYING PRODUCTS
Oil & Gas Fired Cabinet Heaters Types VN/VD HN/HD RN/RD
Models 100 125 200 250 400 500 600 800 1000 1200
External Oil & Gas Fired Cabinet Heaters Types VN VD HN HD RN RD
Models 100 125 200 250 400 500 600 800 1000 1200
PV Gas Fired Cabinet Heaters Types PVN PVD
All models
Variante2 Gas Unit Fired Heaters Types VRA VRC VRBD VRE
All models
External Variante2 Gas Fired Unit Heaters Types EVRC EVRD
All models
OUH2 Oil Fired Unit Heaters Types OUHA OUHC
Models 100 200 300
Note: To comply with ECA scheme requirements all heaters must be selected with CP$ type optimised controls