Capital Allowance
/ˈkæpɪtl əˈlaʊəns/
Definitions
- (n.) A tax relief allowing businesses to deduct certain capital expenditure from their taxable profits over time.
The company claimed a capital allowance for the new machinery purchase to reduce its tax liability.
Forms
- capital allowances
Related terms
See also
Commentary
Capital allowances often replace accounting depreciation for tax purposes and require careful tracking of qualifying assets.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.