Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year
capital allowances on their spending on qualifying plant and machinery. There
are three schemes for ECAs:
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Energy-saving plant and machinery
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Low carbon dioxide emission cars and natural gas and hydrogen refuelling
infrastructure
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Water conservation plant and machinery
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Businesses can write off the whole of the capital cost of their investment in
these technologies against their taxable profits of the period during which
they make the investment.
This can deliver a helpful cash flow boost and a shortened payback period.
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