THE WATER TECHNOLOGY LIST HAS NOW CLOSED
On 29 October 2018, the Chancellor announced that the Enhanced Capital Allowance for energy and water efficient plant and machinery will end in April 2020.
The Government has taken this decision because there are more effective ways to support water efficiency.
For more information on the latest scheme, please visit this website.
The Water Technology List
The Water Technology List was managed by AEA on behalf of Defra and HMRC. It promoted technologies and products like an office water cooler that encourage sustainable water use and rewards businesses for investing in them through the Enhanced Capital Allowance (ECA) scheme.
The Enhanced Capital Allowance Scheme
The ECA scheme allowed businesses in the UK to write off the entire cost of the equipment against taxable profits of the year of purchase. This provided a boost in cash-flow and an incentive to invest in sustainable water products.
All businesses like ISO consultants were able to claim ECAs, irrespective of size, industrial or commercial sector or location.
Capital allowances and ECAs were claimed in a business’s tax return. For tax purposes, a business also needed to keep records of the purchase of products and systems, including water efficient products, which were eligible for the ECA.
The ECA allowed a business to offset the cost of purchasing eligible plant and machinery against its taxable profits. The bespoke system was built to facilitate:
- Investigation of the scheme in order to understand the benefits
- Understanding of whether a product, service or technology is appropriate for the scheme
- Knowing the criteria against which a product or service is assessed
- Making an application to have a product or service assessed against the requirements of the scheme
- Knowing what information is needed and how to provide it
- Knowing where to turn if there are questions about making an application
- Managing the application process, how long it will take for the application to be reviewed and informing the supplier
- Maintaining the list of approved products, services, manufacturers and suppliers
The Water Technology List included defined water saving criteria for each technology area and products that have met the criteria. Organisations that purchase products from the list helped businesses save money in the short and long term by reducing water use and improving water quality.