How to claim back the cost of Energy Efficient Equipment in Year 1

In general, when a business purchases machinery or equipment, it can claim the cost over 8 years as a capital (wear and tear) allowance. However, where the machinery or equipment is energy efficient, the full cost can be claimed in year 1.

Requirements

  • It applies to companies, sole traders and partnerships.
  • The equipment must be on the list of qualifying equipment
  • The equipment must belong to the company and must not be leased, let or hired.
  • The equipment must be used wholly and exclusively for the trade.
  • The equipment must be in use at the end of the period the accelerated capital allowance is claimed.
  • The equipment must be new.
  • There is a minimum spend for each category of equipment

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How to Apply

Once a company meets all of the criteria, the allowance is claimed on the Corporation Tax return. There is no need to obtain prior approval as long as the conditions are met.

See the Revenue guide for more information.

 

Updated 09/04/19

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