100% Tax Relief in the UK for Water Meters

The Availability of 100 percent Tax Relief on Both the Purchase and Installation of ABB's Electromagnetic Flowmeters Means that Companies are Able to Save Money in Both the Short and Long Term

Water companies can reduce the cost of using the latest flowmetering equipment by choosing ABB's electromagnetic flowmeters from theWater Technology Listscheme. Set up over 10 years ago to promote the use of water efficient technology, the scheme allows companies to offset 100 percent of the costs associated with both purchasing and installation in the first year.

As listed products within the scheme, ABB's WaterMaster, AquaMaster and Aquaprobe flowmeters are all eligible for 100 percent tax relief at the time of purchase. In many cases, this removes the cost argument that has seen many water companies continuing to opt for mechanical flowmeters, despite their many drawbacks compared to electromagnetic devices.

"Although electromagnetic flowmeters have been widely embraced by the UK water industry, they have yet to completely replace mechanical meters, which are seen by many to continue to offer a cheaper alternative," says Alan Hunt, Product Specialist for ABB's UK Measurement Products business. "This is despite the many inherent drawbacks of mechanical flowmeters, which include deteriorating accuracy from the day they are installed caused by wearing of internal components."

The availability of 100 percent tax relief on both the purchase and installation of ABB's electromagnetic flowmeters means that companies are able to save money in both the short and long term.

In the short term, there is the possibility of recouping their initial investment against their taxable profits, effectively reducing the upfront cost by allowing the total cost of a project to be offset.

In the long term, further savings stem from the enhanced accuracy arising from using electromagnetic flowmeters, which remains constant throughout their operational life. With no moving parts that can fail, electromagnetic flowmeters require little or no maintenance, offering further cost savings.

Developed by Defra and the Inland Revenue in partnership with EnviroWise, the Water Technology List is aimed at helping businesses save money by encouraging them to invest in technologies and products that reduce water use and improve water quality.

"Although the Water Technology List scheme has been around for a long time, we believe that many people are unaware that it applies not only to the products listed but also to the installation itself," says Alan Hunt. "With the cost of installation accounting for around 50 percent of a typical project, the ability to write off an investment against tax by using a listed product offers a very significant incentive."

Source: SourceWire

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