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Tax breaks urged for green equipment - 06/09/2011

As wholesale prices increase, many business energy customers are looking for different ways to reduce their carbon footprint and cut their gas and electricity costs.

Organisations in the hospitality sector are following this trend and one industry leader has now called for more support.

Martin Couchman, deputy chief executive of the British Hospitality Association, has said that the government should offer tax breaks to hotels using energy-efficient equipment.

At present, a system known as Enhanced Capital Allowances (ECAs) is given to businesses using certain green appliances.

"Within a kitchen you have dishwashing, cooking and refrigeration – one is already covered by this system [refrigeration] and the other two aren't," Mr Couchman explained.

"That's an area that does become quite important, because businesses that have used the ECA scheme have found it an absolute nightmare to make sure the piece of equipment met those standards."

He pointed out that these difficulties make a case for changing the tax rules.

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