Winter is coming…
Hopefully, this year’s UK winter won’t be anything like the Game of Thrones winter! However, just in case it does last a decade and you do not have access to a dragon, outlined below are some utility bill reducing technologies and the tax reliefs businesses may be able to claim.
Annual Investment Allowance (AIA) = a business can write off the cost of the asset up to £200,000 (subject to restrictions).
Writing Down Allowances (WDAs) = if the value of the asset is not written off in full, the remaining value reduces either by 8% or 18% p.a.
100% First Year Allowance (FYA) = like the AIA, however, no restriction is placed on the value of the asset.
Tax relief on utility bill reducing tech
Previously attracting enhanced capital allowances, from April 2012 the standard AIA is available along with 8% WDAs.
This section includes items such as roof lining, double-glazing, draught exclusion and cavity wall filling. Adding qualifying items to an existing commercial property can also qualify for the AIA plus 8% WDAs.
Cars with low CO2 emissions
New and unused cars which emit less than 75g/km (50g/km from 1/6 April 2018) using the official CO2 emissions figure can qualify for 100% FYA. Electric cars can also qualify.
Environmentally beneficial and energy saving plant and machinery
The water technology criteria list details a number of qualifying technologies. A 100% FYA is available for qualifying expenditure.
Energy saving equipment includes items such as hot water boilers, close control air conditioning, and air source heat pumps. Qualifying expenditure attracts a 100% FYA.
Please go to https://etl.beis.gov.uk and watertechnologylist.co.uk to view all the technologies which can attract enhanced capital allowances (100% FYA)..