FA 100% first-year allowance is available for expenditure incurred on designated energy-saving technologies and products. This is part of the enhanced capital allowance scheme which also includes allowances on environmentally beneficial plant or machinery (see B3.324D). First-year allowances on energy-saving plant or machinery are repealed with effect for expenditure incurred on or after 6 April 2020 (income tax) and 1 April 2020 (corporation tax)1. See also CA23140.
Provision is made for the qualifying energy-saving technologies and products to be included in lists issued by the relevant government department (now the Department for Business, Energy and Industrial Strategy), although the scheme is managed by the Carbon Trust on BEIS's behalf. The allowances are not available where feed-in tariffs or renewable heat incentive tariffs are paid in respect of electricity or heat generated, or gas or fuel produced (see below). In certain circumstances, the allowances may be converted by companies into a repayable 'first-year tax credit' (see B3.324H).
The scheme initially covered eight categories of qualifying technology, and further categories have since been added,
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 15:58