capital allowances
Asset depreciation relief
Capital allowances are tax deductions businesses can claim for certain capital expenditures—money spent on assets like equipment, machinery, or vehicles.
Rather than deducting the full cost immediately, the allowance spreads the tax benefit over time, reflecting the asset's depreciation.
The term is primarily British; American tax law uses similar concepts under different names like depreciation deductions.
The company claimed capital allowances on its new fleet of delivery vans.
- deductionsConclusions from reasoning
- depreciationAsset value reduction over time
- tax reliefReduction in owed levies
- balance sheetAssets-liabilities-equity report
- salvage valueAsset's worth when retired
business assets · government incentives · corporate tax · fixed assets · write-offs · profit and loss statement · amortization · tax credits · cash flow analysis · residual value · tax planning · financial statements · lease agreements · bookkeeping · expense tracking · filing deadlines · legal loopholes · fiscal policy
- Irish TaxesVAT, corporation tax, stamp duty, income tax, USC
- subsidiesfarm subsidies, subsidy, agricultural subsidies, crop subsidies, energy subsidies
- tax deductionsdeductions, tax deductions, exemptions, standard deduction, itemized deductions
capital allowancestaxable income
Earnings subject to taxation
tax liability · taxable gains · capital gains · clawback · gross income
capital, allowance, capitals, capitalize, capitalized, capitalizing, capitalization, capitalism, capitalist