Measure

Capital allowances - withdrawal of enhanced allowances for energy and water efficient plant and machinery.

The measure

The first year allowance and associated first year tax credit for products on the energy technology list (ETL) and water technology list (WTL) will be withdrawn in April 2020.

In the interim, there are various updates to the list of energy saving assets qualifying for the accelerated 100% first-year allowance, to reflect developments in eligible technologies.

 

Who will be affected?

Businesses purchasing qualifying plant and machinery, as listed on the ETL and WTL.

 

When will the measure come into effect?

The first year allowance and first year tax credit for products on the ETL and WTL will end with effect from 1 April 2020 for companies and from 6 April 2020 for unincorporated businesses.

Our view

This measure is likely to impact businesses investing in energy efficient and environmentally beneficial plant and machinery, and may discourage some from investing in such technologies.