CB04 (archived) Enhanced capital allowance scheme (2013)

This CIBSE Briefing has been archived, and should not be used on current projects.

The Enhanced Capital Allowance (ECA) scheme was introduced by the Finance Bill in 2001 to encourage businesses to invest in energy-saving equipment. It is an integral part of the climate change levy package. The scheme provides an incentive for your clients to make energy saving investments in specific technologies and products approved by the Department for Energy and Climate Change (DECC). The ECA scheme is an extension of the Integral Features (8% SRP) regime in that the benefit of the capital allowances are accelerated into one year and not over 15 to 22 years as with the SRP.

ECA’s enable businesses to claim 100% first-year allowances (FYA’s) on their spending on qualifying energy-saving plant and machinery in the year of investment. As such they attract higher levels of relief over and above integral features and general plant and machinery mentioned above. The higher energy efficiency standards of the approved equipment can assist in achieving the levels of energy performance required under the Building Regulations.

However ECA’s will only be maximised by the client if considerable pre-planning takes place by the building services engineer and/or specialists working together and prior to specifications and equipment choices being finalised.

This totally revised edition of CIBSE Briefing 4 updates the information in the previous 2002 edition.