What is the Climate Change Levy and the Enhanced Capital Allowance (ECA) scheme?
The Climate Change Levy (CCL) is a levy (charge) applied to UK energy bills from April 2001. It’s aim is to encourage improved energy efficiency. The Enhanced Capital Allowance (ECA) scheme applies to certain products with energy saving characteristics. Not all such products are covered by the scheme. End users who have eligible products installed can claim 100% ECAs (tax relief) on that investment in the year of purchase, rather than at the normal rate of 25% annually on the reducing balance. The 100% allowance in the first year thus helps cash flow. Eligible end users should notify their tax advisers if they have purchase qualifying products and retain the invoice. Further details about the scheme for Enhanced Capital Allowances, and a list of products that are approved, can be found on the ECA website. The UK Carbon Trust also has an information site dealing with many aspects of energy efficiency.
