The Finance and Leasing Association (FLA) is calling on the Treasury to extend tax relief on energy efficient equipment to the asset finance sector.
The association believes that the extension would benefit small businesses and is calling specifically for the relaxation of the Enhanced Capital Allowances (ECAs) to cover energy saving equipment hire.
ECAs enable a business to claim up to 100 per cent first-year capital allowances on their spending on qualifying plant and machinery. Currently the ECAs apply to businesses that purchase equipment with a bank loan but not when that equipment is leased.
The FLA claims that if the ECA system was extended to include leasing companies, it would support investment in energy efficient companies by small businesses, because the benefits would be passed on through better commercial leasing rates.
A spokesperson for the FLA told Greenwise: ?It would give the asset finance companies the scope to pass on the ECA through decreased rentals.?
It is hoped that, as well as offering small businesses increased support, the FLAs latest bid to the Treasury may highlight the many other benefits that can be gained through ECAs.
This article was written by Katie-Jill Rowland
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Source: http://vinovasi.com/business/advertising/fla-urges-treasury-to-extend-green-tax-relief.html
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