Budget 2018: the chancellor has announced the ending of Enhanced Capital Allowances (ECA) for energy and water efficient plant and machinery from April 2020.
The ECA allows 100% of the cost of qualifying plant and machinery to be written off against taxable profits, on top of any Annual Investment Allowance.
- The list of qualifying plant and machinery will be changed for 2019 and 2020.
- The ECA scheme will end from 1 April 2020 for companies and 6 April 2020 for unincorporated businesses.
- The first year allowance tax credit (FYTC) for loss making businesses that invest in energy efficient plant and machinery will also cease from April 2020.
Useful links:
External link
HMRC: Ending enhanced capital allowances for energy and water efficient plant and machinery
