Tax Incentives

First Year Allowances (FYA)

You can claim capitol allowances when you purchase assets such as plant and machinery to use in your business. If the asset is eligible, you can deduct the full cost from your profits before tax. This is called Annual Investment Allowance (AIA).

AIA is currently limited to £200,000 for a full year. However, if you purchase an asset that qualifies for First Year Allowances (FYA) then you can claim this on top of AIA.

You can claim for FYA if you purchase energy and water efficient equipment that you keep to use in your business. For example, Solar Thermal, Ground Source Heat Pumps and Air Source Heat Pumps.

For example, if you install solar thermal on your business premises, the cost of this energy saving technology can be deducted from profits before tax.


Climate Change Levy (CCL)

If your business currently pays a Climate Change Levy (CCL) on your energy bills you may be eligible for a discount through a Climate Change Agreement (CCA).

This is a voluntary agreement which details targets to increase energy efficiency and reduce carbon emissions. CCA operators pursuing a discount must measure and report their energy use and carbon emissions against agreed targets over four, two-year target periods.

By partaking in this scheme, you could earn 90% discount on electricity and up to 65% on the levy charged for gas, coal and LPG in return for meeting energy or carbon saving targets.