Grants, loans and allowances for water efficiency measures

The Enhanced Capital Allowance (ECA) scheme enables you to deduct the whole cost of your investment in water-saving technologies and products from your profits in the tax year that you make the purchase. The scheme is available to businesses that pay UK corporation tax or income tax, and that have enough profits for the allowance to be written off against.

You can claim the allowance when you buy any of the products that appear on the water technology list (WTL). The WTL includes water efficient products from taps to industrial cleaning and leak detection equipment.

Manufacturers and suppliers that wish to include their products on the WTL must meet certain qualifying criteria. The WTL symbol can be used to promote products for sales and marketing purposes.

The following technology areas are included on the WTL:

• cleaning-in-place equipment - ie monitoring and control equipment, and spray devices
• efficient showers - ie aerated showerheads, auto shut-off showers, flow regulators, low-flow showerheads and thermostatic controlled showers
• efficient taps - ie automatic shut-off taps, electronic taps, low-flow screw-down/lever taps and spray taps
• efficient toilets - ie low-flush toilets, retrofit WC flushing devices and urinal controls
• efficient washing machines - ie efficient commercial and industrial washing machines
• flow controllers - ie control and flow-limiting devices
• leakage detection equipment - ie data loggers, pressure-reducing valve controllers, and remote meter-reading and leak-warning devices
• meters and monitoring equipment - ie flow meters and water management software
• rainwater harvesting equipment - ie monitoring and control equipment, rainwater filtration equipment and rainwater storage vessels
• small-scale slurry and sludge dewatering equipment - ie belt press, centrifuge and filter press equipment
• vehicle-wash water reclaim units - ie partial or full reclaim systems
• water efficient industrial cleaning equipment - ie scrubber/driers (walk-behind and ride-on machines) and steam cleaners
• water management equipment for mechanical seals - ie seal water recycling units, internal flow regulators, and monitoring and control units
• water reuse systems

GOV.UK: Enhanced Capital Allowance - technology list and criteria

To be eligible for the ECA, the product must be on the WTL at the time you buy it - you cannot claim an ECA on a product that is added to the WTL after you purchased it.

New products are added to the WTL on the first day of every month. The criteria for the WTL may be reviewed annually and can include the introduction of new technologies.

WRAP (Waste & Resources Action Programme) provides structured information and support to businesses to help them achieve water efficiency savings in Northern Ireland.

Zero Waste Scotland provides structured information and support to businesses to help them achieve water efficiency savings in Scotland.

Wrap Northern Ireland: Tracking water use to cut costs

Resource Efficient Scotland: Implement a water minimisation programme

Scotland: Hydronation water innovation service

Watch our short video:

How to harvest rainwater for your business