ECAs are a straightforward way for a business to improve its cash flow through accelerated tax relief
The Enhanced Capital Allowance scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure. This means that businesses can write off the whole cost of the biomass equipment against taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in biomass equipment which normally carries a price premium when compared to less efficient alternatives.
For purchasers of equipment, the link below provides information on which products are eligible for enhanced capital allowance, and provides details on how to claim the enhanced tax relief when you have made a purchase of eligible equipment. http://etl.decc.gov.uk/etl