Climate Change

Climate Change is one of the world’s biggest challenges.

At HMRC we are taking positive steps not only to reduce our impact on the environment but we are also keen to support our customer’s abilities to reduce their carbon emissions by promoting government measures available to them.

Did you know that as part of the government’s programme to manage climate change, Enhanced Capital Allowances (ECA) are available to encourage businesses to invest in certain types of equipment? ECA are 100 per cent first year allowances enabling a business to relieve the entire cost of the asset against profits in the year of acquisition, so providing a cash-flow advantage over other capital allowances.

ECA are available on

  • certain energy saving equipment
  • certain environmentally beneficial (water efficient) equipment
  • cars with carbon dioxide emissions not exceeding 110g/km driven
  • natural gas, biogas and hydrogen gas refuelling equipment

The ECA website (Opens new window) covers equipment that qualifies for the allowance and provides background information about the scheme and its benefits. It also provides the performance criteria for each technology and it explains how to claim an ECA.

If your business leases or purchases new low carbon emission cars you will find more information in the Capital Allowances manual. (The capital allowances rules (PDF 39K) for expenditure on cars with emissions above the 110g/km threshold were changed by Finance Act 2009. The Capital Allowances manual will be updated to reflect these changes in the autumn)

Various measures are available to encourage environmentally friendly transport for staff between home and work. The measures include exemptions from tax for works’ bus services and subsidies paid to public bus services as well as the provision of bicycles and cycling equipment.

Changing the way in which we carry out our business does not always have to cost money and in many instances can lead to significant savings, for example:

  • switching off appliances rather than leaving them on standby
  • recycling wherever possible
  • reducing waste and water consumption
  • avoiding unnecessary business travel by using alternatives such as video and telephone conferencing

HMRC is committed to respecting the environment and we would encourage our customers to do the same.