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Lower long-term energy costs

As well as the added tax incentive, investing in energy-saving equipment could 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.

An environmentally friendly reputation

Investing in energy-saving equipment shows a commitment to reducing carbon emissions, and can increase a company’s appeal with both customers and investors.

Many people now look at how environmentally friendly a company’s policies and production methods are, before deciding to invest in it or its products and services.

So as well as helping the environment, it also makes good business sense to proactively reduce energy usage.

 
  Capital Allowance Enhanced Capital Allowance
Year
Capital Purchase
Allowance
Tax Reduction
Capital Purchase
Allowance
Tax Reduction
1 £1,000 £250 £75 £1,000 £1,000 £300
2 £750 £187.50 £56.25 £0 - -
3 £562.50 £140.63 £42.19 0 - -
4 £421.88 £105.47 £31.64 0 - -
5 £316.41 £79.10 £23.73 0 - -
6 £237.30 £59.33 £17.80 0 - -
7 £177.98 £44.49 £13.35 0 - -
8 £133.48 £33.37 £10.01 0 - -
9 £100.11 £25.03 £7.51 0 - -
10 £75.08 £18.77 £5.63 0 - -
Total £3,774.74 £943.69 £283.11 £1,000 £1,000 £300
             
 
 
 
 
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