By the end of 2009 the use of virgin R22 refrigerant will be banned, but it will be permissible to use recycled R22 for maintenance purposes until the end of 2014. However, there is no guarantee on the quality and availability of the refrigerant and industry experts are predicting stocks of recycled R22 to be depleted well before the end of 2014 which will inevitably result in a steep increase in the cost of the available refrigerant. Dates are as follows:
From 01/01/2010 - The use of virgin HCFC’s shall be prohibited in the maintenance and servicing of refrigeration and air conditioning equipment existing at that date.
Spares are in short supply as manufacturers have generally stopped producing spares for R22 equipment. Taking this into account we believe equipment will become unserviceable after 2010 if replacement components are required.
We can help you in giving budgetary for replacement and will ensure that all and any proposals we put forward are in line with current legislation. We are recommending that R22 replacement is considered and planned for ahead of the phase out to avoid any unnecessary uplifts in costs given R22 supplies are likely to diminish and increase in cost as a consequence of demand.
The guidance also notes that recent legislation amendments restrict the use of recycled HCFCs - where it has been given only basic cleaning after recovery - can only be reused by the firm who recovered the gas or the owner of the site. It cannot be traded.
Crystal Sigma Limited where possible will engineer a tax efficient solution subject to it being fit for purpose and workable within your budget.
ECA qualification is dictated by the ETL (energy technology list) and subject to the equipment appearing will qualify. Crystal Sigma Limited can only go so far with this and the claim itself is then up to you and your accountant. We will of course assist where possible.
Whilst it is not always straight forward Crystal Sigma Limited have a wealth of experience in this sector and have engineered many systems from just a few thousand pounds to in excess of six figures which qualify.
Please feel free to contact us today to discuss your requirements 0208 4523030.
The Enhanced Capital Allowance (ECA) scheme is a key part of the Government's programme to manage climate change. It provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria.
Enhanced Capital Allowances (ECA) allows the cost of an investment to be written off against the taxable profits of the period in which the investment is made. This can boost cash flow along with the comfort that your purchase will also benefit from reduced energy bills due to their energy efficient nature.
There are no catches or drawbacks to the scheme and it really should be seen as an incentive. The vast majority of market leading brands appear on the ETL giving you the peace of mind that manufacturer is both familiar and reputable.
For more information please refer to the ECA website http://www.eca.gov.uk/etl/
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