Capital allowances: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Expand and link with 100% capital allowance page.)
imported>Doug Williamson
(Add link.)
 
(4 intermediate revisions by the same user not shown)
Line 1: Line 1:
''UK tax.''   
1.  ''UK tax.''   


Relief from income tax and corporation tax based on eligible capital expenditure.
Relief from income tax and corporation tax based on eligible capital expenditure.


The rate of relief depends on the amount and the nature of the expenditure.
The rate of relief depends on the amount and the nature of the expenditure.
2.
Similar relief under other tax systems, often known as 'tax depreciation'.
Tax depreciation and capital allowances generally give the same total tax relief over time, as the total accounting depreciation charged on the same assets over their total life.
However, the phasing of the tax relief will often differ from the phasing of the accounting depreciation charges.
These timing differences are one source of deferred tax assets and liabilities.




Line 11: Line 23:
* [[Balancing allowances]]
* [[Balancing allowances]]
* [[Balancing charges]]
* [[Balancing charges]]
* [[Capital ]]
* [[Capital expenditure]]
* [[Capital expenditure]]
* [[Corporation Tax]]
* [[Corporation Tax]]
* [[Deferred tax]]
* [[Depreciation]]
* [[Depreciation]]
* [[First year allowance]]
* [[First year allowance]]
Line 22: Line 36:
* [[Tax written down value]]
* [[Tax written down value]]
* [[Writing down allowance]]
* [[Writing down allowance]]
* [[CertICM]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 13:21, 28 April 2022

1. UK tax.

Relief from income tax and corporation tax based on eligible capital expenditure.

The rate of relief depends on the amount and the nature of the expenditure.


2.

Similar relief under other tax systems, often known as 'tax depreciation'.

Tax depreciation and capital allowances generally give the same total tax relief over time, as the total accounting depreciation charged on the same assets over their total life.

However, the phasing of the tax relief will often differ from the phasing of the accounting depreciation charges.


These timing differences are one source of deferred tax assets and liabilities.


See also