14 April 2020

Enhanced capital allowance (ECA)

Purchases of energy-efficient technology and equipment can secure 100% tax relief. ECA relief is over and above the £1m annual investment allowance (AIA) and, unlike the AIA, there is no cap on qualifying ECA expenditure. However, the equipment needs to be  new, unused  and on the government-approved list – see here. Buying from this list can also bring a 5% discount in VAT.

Cycle to work scheme

There is now no cap on the purchase price of a bike in this salary sacrifice scheme. To qualify, strictly 50% of the bike’s journeys need to be for work, which for this purpose can include your daily commute.

Electric vehicles

Switching to electric when buying company cars also brings lower rates of tax – a 0% company car benefit for 2020/21. For more on this, see here.

Land remediation relief

If a property development project involves cleaning up contaminated land, up to 150% tax relief is available on the cost. If the development project makes a loss, a 24% cash repayment for the land remediation cost can be claimed.

And watch out for…

…potential rises in landfill tax and the climate change levy – the latter is charged on high commercial energy consumption via your energy company’s bills.

5 little steps to an eco-friendly business

1. Use videoconferencing to minimise travel
2. When current restrictions are lifted and people return to the workplace, encourage car clubs or car sharing by employees
3. Install energy-efficient LEDs
4. Clearly label recycling bins
5. Install electricity smart meters and switch to renewable energy sources

Can we help?

If you are planning to minimise the environmental impact of your premises, do talk with one of the Shipleys team to discuss the latest incentives and allowances.

Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary, if you would like advice or further information, please speak to your usual Shipleys contact.

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