The Government has introduced an incentive for buyers of energy efficient equipment to be rewarded through the tax system.
The aim is to encourage end users to select equipment that will ultimately help meet the Government's climate / CO2 reduction targets.
Normally, the taxman only allows businesses to write down the cost of capital equipment over a number of years. The ECA scheme allows the business to write 100% of it down in the first year of purchase, which gives a cash flow advantage.
In simple terms, you get all the benefit in the first year. If your business is paying the electricity bill for the appliance, then having selected an energy efficient one will produce savings throughout its life. In order to get on to the Approved List, the appliance must be independently tested, so the ECA logo is also a stamp of authority and a good marketing endorsement.
The end purchaser of the product may be eligible. So if you are a shop or bar owner, using the appliance in your shop, and you paid for it, then you can claim the benefit.
If you are buying the product to resell on to somebody else, then you cannot make use of the tax break.
If you are a brand owner who is buying the cabinet to give away or to lend out, then you should be able to claim the benefit.
Visit https://www.gov.uk/guidance/energy-technology-list for full details. It is a simple matter of inserting a figure in your corporation tax return.
To be eligible for the tax break, the appliance must have met certain performance standards.
These are the well known M1, M2 etc ratings that are common in the food industry. They give temperature and performance ratings to the equipment.
So you can choose what you are buying. The performance rating of any particular appliance is shown on the Energy Technology List.
For example the Interlevin back bar cooler model SC-2 has the most powerful M1 rating which is exactly what end users want from a bottle cooler - cold beers.
Go to www.gov.uk/guidance/energy-technology-list and there you can find promotional materials, the list of eligible products and details of how to claim.
Or just look for the ECA logo for eligible products*
* The ECA scheme is administered by the Carbon Trust and the terms of the scheme may alter from time to time. This means that cabinets may drop out of the scheme in between us publishing our newsletter and/or website and the end of it's validity.
You must always consult www.gov.uk/guidance/energy-technology-list for the latest rules and procedures and to check that the indicated product is still on the Energy Technology List. Always consult your qualified accountant on tax matters.
Shop-Equip Limited, nor any of our manufacturers/suppliers do not offer tax advice.