Q » What are Capital Allowances, and how do they reduce a business's tax liability?
24 Nov, 2025
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A » Capital allowances are tax reliefs available to businesses for capital expenditures on assets like machinery, vehicles, or equipment. They allow businesses to deduct a portion of the asset's cost from their taxable income, thereby reducing their overall tax liability. By spreading the cost over several years, capital allowances help to manage cash flow and lower the amount of tax payable in the short term, enhancing financial planning and investment capacity.
24 Nov, 2025
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