Meaning of “capital allowance” in the English Dictionary

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"capital allowance" in Business English

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capital allowancenoun [ C ]

uk us 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.

(Definition of “capital allowance” from the Cambridge Business English Dictionary © Cambridge University Press)