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Tax Allowances For Sustainable Water Use
April 05 2007
The Enhanced Capital Allowance Scheme enables businesses to claim 100% first year capital allowances on investments in technologies and products that encourage sustainable water use. Businesses are now able to write off the whole cost of their investment against their taxable profits of the period during which they make the investment.
Enhanced Capital Allowances will encourage businesses to invest in water saving technologies, as capital allowances allow the costs of capital assets to be written off against a business’s taxable profits. They take the place of depreciation charged in commercial accounts which is not allowed for tax. The main rate of capital allowances for expenditure on most plant and machinery is 25% a year on the reducing balance basis.
The information covered on Enhanced Capital allowances is:
Criteria and applications - To provide guidance for manufacturers and suppliers wishing to register their products for inclusion on the Water Technology List
Products and claims - To help end-user companies that wish to take advantage of the Enhanced Capital Allowance to identify which products and technologies are included on the Water Technology List
Promotional tools - Useful for manufacturers to provide information to sales representatives and distributors on the benefits of the scheme for their customers.
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