Enhanced Capital Allowance

Ambi-Rad energy efficient heating systems offer a considerable number of benefits to end
user customers these include:

Reduced running costs – savings of up to 60% can be achieved
Even heat coverage at low level
Controllability – systems can be easily controlled to provide varying zoned temperatures and
   operating times
Minimal heat losses through the roof of the building
Good aesthetic integration within the building

The appeal of Ambi-Rad solutions is further enhanced by the availability of Enhanced Capital
Allowances, a government tax incentive scheme encouraging businesses to purchase products
with greater energy efficiency.

1. Why have Enhanced Capital Allowances been introduced?

To offer businesses an effective means of both neutralising the impact of the Climate Change
Levy (a business tax on the use of energy sources) introduced in 1991 and an incentive to
adopt a more environmentally conscious approach when deploying energy resources.

2. What financial benefits are derived by claiming ECA’s?
100% capital allowances in the first year, including the costs of installation.
Improved cash flow.
Taxation reduced in the first year.
Improved profit after tax.

3. Does warm air and radiant space heating qualify for ECA’s?
Yes, as of August 2002 high efficiency radiant and warm air heating systems are included as
long as they meet the necessary efficiency criteria, and have been independently verified by an approved body.

4. What is the inclusion threshold for radiant heating?
Individually flued (or unflued) systems that achieve a net thermal efficiency of 86%.
And in addition have a radiant efficiency of 60%.
Multiburner or continuous systems that achieve a net thermal efficiency of 90%.

5. What is the inclusion threshold for warm air heating?
All units must have a minimum net thermal efficiency of 89%.


6. 'What impact will ECA's have on purchasing capital equipment?
Quite simply buying energy efficient systems will now cost less than standard efficiency options.

 
Standard Efficiency Equipment
High Efficiency Equipment
Capital Cost (inc. installation)
£37,250
£44,000
Fuel Costs
£15,900
£14,700
Climate Change Levy
£1,988
£1,838
Less Capital Allowance
£2,800
£13,200*
TOTAL
£52,338
£47,338

Notes..
Fuel costs based on 1600 hrs per annum.
Fuel cost used for illustration 1.2p/kW.
Installation costs from actual data.
Based on Corporation Tax rate of 30%

* 100% capital allowance to be claimed in the first year including the costs of installation.

7. What Ambi-Rad products qualify for ECA ? (subject to final verification by The Carbon Trust)
Solarglow radiant plaque heaters.
Nor-Ray-Vac continuous radiant system.
TCORE warm air unit heaters.
UPA high efficiency warm air unit heaters.
Centurion high efficiency cabinet heaters.
High efficiency oil fired unit heaters.
STB and STE gas fired air heaters.


Call Clive Mason for more info: contact us »