First-year allowances are available at a rate of 100% on expenditure on new plant and machinery that falls into the category of ‘environmentally beneficial’. The term ‘environmentally beneficial plant and machinery’ is used for certain water technology products. The idea is that the cash flow advantage of accelerated allowances should encourage businesses to invest in technology that either saves water or improves water quality. Full information about the scheme can now be found on the government website at www.watertechnologylist.co.uk and www.gov.uk/government/publications/water-efficient-enhanced-capital-allowances (see also ¶190-365).

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