New capital allowances legislation comes into force on 7 August 2014 which gives statutory effect to the revised lists of qualifying technologies issued by the Secretary of State for Environment, Food and Rural Affairs on 1 July 2014. The special scheme, known as the Enhanced Capital Allowances (ECA) scheme for energy-saving technologies, allows for 100% first year allowances on qualifying expenditure.
The ECA scheme for environmentally beneficial technologies enables a business to claim accelerated tax relief on its spending on qualifying technologies. The cash-flow benefit of accelerated tax relief is designed to encourage businesses to invest in technologies
that save energy.