ECA expansion 'would encourage green investment'

05 September 2011

Written by Jeni Browne

Commercial mortgage holders could be some of the people that would benefit from more green incentives.

British Hospitality Association deputy chief executive Martin Couchman noted Enhanced Capital Allowances (ECA) can provide tax breaks for firms with "environmentally-friendly equipment".

However, only refrigeration units are covered by this, whereas other items such as dishwashers and cookers are excluded.

If the rules were be clearer and could "cover a wider range or products", corporations such as restaurants, hotels and other food service providers might become more sustainable, he explained.

Furthermore, many businesses have found ensuring appliances meet the standards required by the ECA an "absolute nightmare", requiring them to put in "a lot more effort".

This is "just awkward", the expert declared.

Managed by the Carbon Trust on behalf of the Department of Energy and Climate Change and HM Revenue and Customs, the ECA scheme enables companies to write off a proportion of the cost of investing in certain sustainable devices on their taxable profits.

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