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Water conservation

Water is a precious natural resource and its sustainable management is essential to protect the water environment and to meet current and future demand. Population, household size and growth and affluence all affect how much water we use. Factors such as climate change are also likely to put supplies under greater pressure in the future, making it important that we adopt more efficient water use patterns.

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Water Efficient Enhanced Capital Allowances

Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. There are three schemes for ECAs:

  • Energy-saving plant and machinery
  • Low carbon dioxide emission cars and natural gas and hydrogen refuelling infrastructure
  • Water conservation plant and machinery

Defra annually reviews the lists of eligible water technologies and products, and issued revised lists on the 28 September 2010. These changes will only become law for tax purposes 21 days after the relevant Treasury Order has taken effect. This will happen sometime in August 2009 when the lists will be transferred to the ECA Water Technology List website. You can preview the lists here:

The Department of Energy and Climate Change leads on the energy technology Enhanced Capital Allowance Scheme and issues the revised energy technology criteria and product lists, for more information visit the Decc website.

Further information

Page last modified: 28 September 2009
Page published: 4 September 2003