The Water Technology List

The WTL is managed by Ricardo-AEA on behalf of Defra and HMRC. It promotes technologies and products that encourage sustainable water use and rewards businesses for investing in them through the Enhanced Capital Allowance (ECA) scheme.

The WTL includes defined water saving criteria for each technology area and products that have met the criteria. Purchasing products from the WTL will help businesses save money in the short and long term by reducing water use and improving water quality.

The Enhanced Capital Allowance Scheme

The ECA scheme allows UK businesses to write off the whole cost of the equipment against taxable profits of the year of purchase. This can provide a cash flow boost and an incentive to invest in sustainable water products.

Loss-making companies can realise the tax benefit of their investment in WTL qualifying technologies with ECA first-year tax credits by surrendering losses attributable to ECAs in return for a cash payment from the Government.

All businesses are now able to claim ECAs, regardless of size, industrial or commercial sector or location.

Capital allowances and ECAs are claimed in a business’s tax return. For tax purposes, your business also needs to keep records of the purchase of products and systems, including water efficient products, which are eligible for the ECA.

To understand how ECAs will affect your business, please either contact your own tax advisor or visit HM Revenue & Customs website www.hmrc.gov.uk/manuals/camanual/CA23100.htm