Business Assistance
A number of schemes have been put in place to incentivise and assist businesses throughout the UK (England, Scotland, Wales and Northern Ireland).
Enhanced Capital Allowances (ECas)
ECAs are designed to help a business improve its cash flow through accelerated tax relief. The ECA scheme for energy-saving technologies encourages businesses to invest in energy-saving plant or machinery specified on the Energy Technology List (ETL) which is managed by the Carbon Trust on behelf of the Government.
Under the ECA scheme, you can claim an ‘enhanced’ 100% capital allowance on qualifying investments in equipment in the first tax year. Normal capital allowances on plant and machinery are 25% a year on a reducing balance basis. So the scheme boosts cash flow and shortens the payback period.
A list of eligible equipment is available from the ECA website - see www.eca.gov.uk.
Once you’ve made a qualify investment, you can claim the allowance on your income tax or corporation tax return. The more you invest, the more you save, so if you invested £10,000, the ECA would reduce your tax bill by £3,000. Under normal capital allowances, you would only be able to reduce your tax bill by £750 in the same period, so you save four times as much. This doesn’t include the savings you make on your energy use with the new equipment.
Qualifying technologies include:
- Heat Pumps for space heating (including Road Energy Systems)
- Pipework insulation
- Heating, ventilation and air conditioning (HVAC) zone controls
- Air-to-air energy recovery
- Combined heat and power (CHP)
- Radiant and warm air heaters
- Solar thermal systems
Energy Efficiency Loans
Applies throughout entire UK and Northern Ireland
Interest-free loans for SMEs that want to save energy and money are available. Funds from £5,000 to £100,000 are available in England and Scotland or all businesses in Wales* that have been trading for at least 12 months. These loans are unsecured, interest-free and repayable for a period of up to 4 years. There are no arrangement fees and aapplication is straightforward. Additionally, all businesses based in Northern Ireland* that have been trading for at least 12 months may be eligible to apply for an unsecured interest-free loan of up to £400,000. The energy saving project (ie replacement of old inefficient equipment with new equipment) must have sufficient energy and carbon savings to justify the loan value.
* Subject to eligibility. Regional variations apply.
Click on the attached Carbon/Loan Calculator may help to establish potential energy savings www.carbontrust.co.uk/energy/takingaction/loans.htm.
Call the Carbon Trust on 0800 085 2005 or see www.carbontrust.co.uk/loans.
IHS is able to help you apply for these loans. Please contact us for more details.
Loan Action Scotland
Applies to Scotland only
Funded by the Scottish Executive, this scheme aims to support companies taking action to reduce their energy bills. Provides loans from £5K to £100K at 0% fixed interest to help finance energy saving measures. It is aimed at SMEs and registered charities can also apply. Tel: 0800 092 9002.
SCHRI Business Loans
Applies to Scotland only
These apply to businesses in Scotland only
You should first speak to your local SCHRI Development officer. Tel: 0800 138 8858.
