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English definition of “allowance”

allowance

noun [C]
 
 
/əˈlaʊəns/
money that someone is given regularly by their employer or by the government to pay for a particular thing: an accommodation/car/mileage allowancean allowance for sth/to do sth Some companies will even give their telecommuting executives an allowance to buy office furniture for their home. Employees relocating to London receive a maximum allowance of £1000 a year.
an amount of something that someone is allowed to have, use, produce, etc.: baggage/luggage allowance Baggage allowance is 2 free bags per passenger, and $80 per additional bag. In Europe nearly all of the valuable emission allowances - permits that each allow one ton of emissions - were given away to power companies.
TAX an amount of goods that you are allowed to buy and take into another country before you have to start paying tax: The Australian Customs Service will not charge you duty or tax on goods you bring in if they are within the duty-free allowance guidelines.
mainly UK TAX an amount of money that can be taken off your income before the tax owed is calculated: a tax allowance a personal/married couple's/single person's allowance an annual allowance
ACCOUNTING, TAX an amount of money that can be taken off a company's profits before the tax owed is calculated: The purchaser of assets can claim allowances on certain items such as plant and machinery.
the fact of planning or paying now for a possible future change in a situation or a possible future cost, or the amount that is planned for: make an allowance for sth It is unlikely that the regulator will make any allowance for falls in customer service caused by a strike. They made a 10% allowance for bad debt. The company will extend existing health-plan contracts and their pricing for eight years, with allowances for inflation. → Compare provision noun
COMMERCE a special arrangement, such as a lower price, that manufacturers offer to stores which are going to sell their products: When selling a new product, manufacturers sometimes give retailers an allowance, for example a sale or return agreement.
→ See also capital allowance, cost of living allowance, display allowance, entertainment allowance, hardship allowance, investment allowance, Jobseeker's Allowance, loan-loss allowance, personal allowance, subsidiary noun, subsistence allowance, writing-down allowance
(Definition of allowance from the Cambridge Business English Dictionary © Cambridge University Press)
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