Consultant launches specialist financial advice service for greener motor retail industry
Tax and finance specialist Davis Langdon Crosher & James is launching a specialist service advising the motor retail industry on capital allowances for integrating sustainable design in car showrooms.
David Rees, firm partner, said: 鈥淚ncorporating sustainable design comes at a cost but what a lot of dealerships don鈥檛 realise is that there are options to offset some of those costs in the form of Enhanced Capital Allowances (ECA). A tax consultant will need to take the lead on ECAs very early in the design process however, otherwise the opportunity to maximise tax relief of this nature will be lost.鈥
ECAs were introduced to the UK tax system in 2001 as part of the UK government鈥檚 commitment under the Kyoto Agreement to reduce UK carbon dioxide emissions by 20% by the year 2010.
Designed to reward investment in the most innovative energy-saving technologies, the Carbon Trust has since approved more than thirteen thousand products from fifteen differing technology groups for inclusion on the Energy Technology List.
The benefits include the installation of ECA-compliant equipment attracting 100% first year tax allowances against gross operating profits in the year of expenditure for clients who can make use of the benefit. Also, operating costs are reduced through energy efficient design and increased performance aids accreditation of improved BREEAM ratings.
The Carbon Trust is also offering 0% interest, unsecured loans of up to 拢100,000 for up to four years towards expenditure on ECA items such as the upgrading or replacement of lighting, boilers or insulation and the like.
Rees added: 鈥淭oday鈥檚 car showroom has an important part to play in helping a customer to make a viable purchase decision at the same time as demonstrating corporate social responsibility."
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