30.10.08
UK Governments Tax Incentives are not working
A recent study by Clive Searle, Director of capital allowances consultants ca4 has found that the system of tax incentives introduced in 2001 to encourage energy efficiency is not achieving the expected reduction in carbon emissions from commercial buildings.
The research found that although 90% of businesses questioned said that tax relief in the form of capital allowances was important to them, few had benefited from the 100% tax allowance on energy efficient plant and equipment. Of those property companies surveyed, 73% had never installed any energy efficient plant and equipment that qualified for Enhanced Capital Allowances. An earlier study by Wordsworth & Grubb also found that the take up of ECA’s was significantly lower than the Government had forecast.
The recommendation by ca4 is that the Government should introduce a system of tax incentives linked to the energy efficiency of the whole building, similar to that used in the USA.
For more information or an estimate of what could be claimed on your property, email our helpline@ca-4.co.uk or call 01905 619224.