Enhanced capital allowances for Environmentally Beneficial Plant and Machinery

HMRC have now published two statutory instruments amending the Capital Allowances (Environmentally Beneficial Plant and Machinery) Order 2003. That order originally implemented legislation introducing 100% first-year allowances for investment in ‘environmentally beneficial plant and machinery’ (as defined by section

45H of the Capital Allowances Act 2001).

Section 45H enables HM Treasury to specify qualifying plant and machinery by order by reference to a description or criteria given by the Secretary of State in a technology or product list. These lists have now been revised and replaced by new lists issued on 1 July 2013. Both of the new Orders amend the principal Order to reflect the new lists.

The descriptions of the environmentally beneficial plant and machinery technology classes have also been amended to reflect the addition of new qualifying technologies (greywater recovery and reuse equipment) in the Water Technology Criteria List and the Water Technology Product List. Broadly, greywater recovery and reuse equipment is purpose-designed equipment containing one or more treatment processes with associated storage, pumping and control systems that accept and treat greywater from baths, showers, washbasins or laundry.

The Energy Technology Criteria List and the Energy Technology Product List are available at:- https://www.gov.uk/government/publications/eligibility-criteria-for-technologies-that-qualify-for-the-energy-saving-enhanced-capital-allowance-scheme.

The Water Technology Criteria List and the Water Technology Product List are available at:- https://www.gov.uk/government/publications/water-efficient-enhanced-capital-allowances.

The Statutory Instruments are available at: - http://www.legislation.gov.uk/uksi/2013/1762/contents/made and http://www.legislation.gov.uk/uksi/2013/1763/contents/made