These financial benefits include Corporation Tax relief via the increased Annual Investment Allowance (AIA). In addition, a predictable 15% to 25% return on investment is available from Renewable Heat Incentive (RHI) payments and biomass fuel cost savings combined, versus oil or LPG.
Increased Annual Investment Allowance (AIA)
The maximum Annual Investment Allowance (AIA) increased to £250,000 on January 1, 2013. This gives UK businesses a great opportunity to gain additional Corporation Tax relief by investing in biomass. The AIA will revert back to a limit of £25,000 on December 31, 2014.
"This means that a business investing up to £250,000 in an up to one MegaWatt biomass boiler heating system from Treco can now gain additional tax relief. This can represent up to £50,000 for an incorporated company or up to £125,000 for an unincorporated business per accounting year, pro-rated until December 31st 2014. It’s simple – the sooner you invest, the greater the AIA tax relief is available," said Tracey Watts, Tax Partner from Albert Goodman Chartered Accountants, Tax Consultants and Financial Planners.
Up £117,066 annual net gain from biomass
An up to £117,066 annual benefit, index linked to inflation, is available from moving from oil or LPG to an up to 1MW biomass boiler heating system. This is made up from combined RHI payments and fuel cost savings from biomass fuels including wood chips and wood pellets. Some examples of the combined fuel cost savings and RHI Payments from 100kW up to 1MW are outlined below.
£242,000 AIA tax relief and net gain from biomass combined
The combination of tax relief via the AIA and the ROI from biomass offers a net gain of up to £167,000 a year to an incorporated company. However, up to £242,000 a year is available to an unincorporated business, versus a previous ceiling of up to £50,000.
About the Guntamatic PRO
The PRO range brings legendary Guntamatic build quality and innovative designs to systems of up to 1MW, made up from individual 175kW to 250kW biomass boilers. They are purpose-designed to stand alone or be used in series, offering greater reliability than with a single 1MW system.
Guntamatic has over 15,000 systems installed to date and more than 50 PRO systems already sold in mainland Europe since launch in 2012. The Austrian company recently celebrated 50 years as a specialist biomass boiler manufacturer.
“Treco and Guntamatic make delivery and installation fast, easy and flexible via a commercial relationship that delivers on customers’ requirements. This means proven designs, short lead times, and excellent, predictable returns for biomass heat right up to 1MW,” said Treco’s founder and managing director Gordon Traill.
“We are pleased that we can finally meet the growing demand we’re experiencing in the UK for systems up to 1MW. The launch of the Guntamatic PRO brings a simple, modular system proven in Europe to mainland UK. With the Guntamatic range and our own installation teams we are using proven equipment, installed by experienced and highly qualified specialists,” Gordon continued.