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Tax Credits for Installing Energy-Efficient Windows

Tax Credits for Installing Energy-Efficient Windows

Can you get tax credits by installing energy-efficient windows?

By Carl Stanford

Tax credits for energy-efficient windows

Are any tax credits available for installing energy-efficient windows?

Sadly, there are no longer any tax credits available for installing energy efficient windows. Previously, replacing single-glazed with double-glazed windows was seen as an improvement and so could be claimed as capital expenditure.

This is no longer the case unfortunately, as double-glazing is seen as the modern standard and therefore not an improvement. However, this type of replacement is countable as allowable expenditure on repairs, and so it can be deducted prior to calculation of taxable profits.

Other energy-saving schemes

You might want to also consider that a number of energy-saving and water-saving technologies can be claimed as capital allowances. First Year Allowances (FYA) allow you to make a claim for up to 100% of the cost of certain items against your business profits, in the year of purchase.

FYA of 100% are available for some water-efficient and energy-saving technologies including taps, toilets, showers, combined heat and power systems, lighting and solar thermal systems. Purchases are claimable under the Enhanced Capital Allowance (ECA) Scheme, but the items must appear on specific lists of qualifying equipment.

The gov.uk website has further information on what is covered by both the water-efficient technologies and the energy-saving technologies ECA schemes.