* * *
capital allowance UK US noun [C] (also investment allowance)
► ACCOUNTING, TAX an amount of money that a business spends to buy buildings, equipment, vehicles, etc., which it can use to reduce the tax on its profits: »
A 100% capital allowance is available for capital expenditure on scientific research, for example, for the purchase of a laboratory.
→ Compare DEPRECIATION ALLOWANCE(Cf. ↑depreciation allowance), WRITING-DOWN ALLOWANCE(Cf. ↑writing-down allowance)
Financial and business terms. 2012.