Water Technology - Enhanced Capital Allowances for UK Companies

Water Technology - All UK businesses can now claim 100% enhanced capital allowances on their spending on water technology, including designated plant and machinery to reduce water use and improve water quality. Under the scheme businesses that invest in qualifying technologies that can reduce water use and improve water quality on or after 1st April 2003 can qualify for 100% first year allowances.

Claims for 100% first year allowances will be made in the business's income or corporation tax return, in the same way as claims for other first year allowances. They can be made after publication of the Water Technology List, which contains details of the qualifying technologies and products. It will be available as soon as it is published from the Environment and Energy Helpline on 0800 585 794 or at the enhanced capital allowance website at: www.eca.gov.uk

The scheme will apply initially to the following designated technology classes, provided the equipment meets the strict water saving/efficiency criteria:

meters and monitoring equipment;
flow controllers;
leakage detection;
efficient toilets; and
efficient taps.

Water Meter

This is a new measure. Enabling legislation setting out the framework of the scheme will be introduced in the Finance Act 2003. The qualifying criteria which technologies will need to meet will be introduced through secondary legislation following the passing of the Finance Act.

Further information can be found at: www.inlandrevenue.gov.uk

Additional Information & Technical Support

For further information about any issues raised or details of Accepta's specialist products and services please call Accepta on +44 (0) 161 877 2334 or e-mail info@accepta.com.