Process Water Recycling

Enhanced Capital Allowance Scheme

Reduce the cost of your vacuum distillation investment and take advantage of the Enhanced Capital Allowance Scheme.

The Enhanced Capital Allowance (ECA) scheme enables businesses to claim a 100% first year capital allowance on investments in certain energy saving equipment, against the taxable profits of the period of investment. Vacuum distillation technology is defined as wastewater recovery and reuse by ECA.

Benefits of the Enhanced Capital Allowance Scheme

Capital allowances enable businesses to write off the capital cost of purchasing new vacuum distillation technology against their taxable profits. The general rate of capital allowances is 18% a year on a reducing balance basis.

Additional benefits of purchasing ECA qualifying energy efficient technologies could include: improved cash flow, lower energy bills, reduction in Climate Change Levy or CRC payment.

How to claim

Capital allowanced and ECAs are claimed in a business’s tax return.

Claiming ECA is straightforward but it is worthwhile talking to your accountant or finance team at an early stage to inform them that your business has incurred qualifying expenditure.

Your business can claim ECA on the cost of vacuum distillation equipment, transportation of the equipment to the site and direct installation costs.

Find out more

For more information on ECA and how to claim against your investment in vacuum distillation technology contact us, go to the UK Government’s Water Technology List website or download The Carbon Trust’s ECA PDF Guide.