Enhanced Capital Allowances (ECAs) are a 100% tax relief to encourage investment in certain qualifying energy and water saving technologies. ECAs were introduced in 2001 as part of the Government’s response to the Kyoto Protocol.

ECAs are available on new build expenditure, refurbishment work and even purchases; in all cases the plant must be new and unused. Taxpayers who can benefit from ECAs include companies, individuals and partnerships in any of the categories listed below:

• Constructing buildings to hold as investments
• Constructing or renovating buildings for their own use
• Fitting out leased property for their own use
• Buying an unused building from a developer

Non-resident landlords can also claim ECAs.

ECAs are an important and expanding fiscal incentive that simply cannot be ignored when considering investment in commercial property.