Enhanced Capital Allowances (ECAs)

Enhanced Capital Allowances (ECA) enable a business to claim 100% first-year capital allowances on their spending on qualifying technology. Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment. This can deliver a helpful cash flow boost and a shortened payback period.

The criteria for qualifying products are reviewed each year, to reflect technological advances and market changes. Relatively unique to OceanLED, our lighting products comply with all of the strictest standards set by the Department of Energy and Climate Change, Her Majesty's Revenue and Customs and the Treasury.

The ECA scheme can bring significant financial savings, in the short and long-term, as well as improving a company's energy-efficiency and its impact on the environment.

1. An immediate cash-flow boost. An ECA provides 100% tax relief on any investment in energy-saving equipment, in the same tax year as the purchase is made. This means a business paying corporation tax at 28% will receive 28p tax relief for every £1 invested in energy-saving products.

2. Lower long-term energy costs. As well as the added tax incentive, investing in OceanLED's energy-saving LED lighting will reduce a company's energy bills, as it has lower running costs. This will also reduce a company's Climate Change Levy, so there are significant long-term savings to be made from the initial investment.