Capital allowances: Difference between revisions
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1. | 1. ''UK tax.'' | ||
''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. | ||
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Similar relief under other tax systems, often known as 'tax depreciation'. | 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. | |||
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* [[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 29: | Line 36: | ||
* [[Tax written down value]] | * [[Tax written down value]] | ||
* [[Writing down allowance]] | * [[Writing down allowance]] | ||
[[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
- 100% capital allowance
- Annual Investment Allowance
- Balancing allowances
- Balancing charges
- Capital
- Capital expenditure
- Corporation Tax
- Deferred tax
- Depreciation
- First year allowance
- General pool
- Income Tax
- Industrial Buildings Allowance
- Qualifying expenditure
- Tax depreciation
- Tax written down value
- Writing down allowance
