First-Year Allowance

Capital Allowances
Capital allowances refer to allowances against UK income tax or corporation tax available to businesses, sole traders, partnerships, or limited companies that have capital expenditures on plant and machinery used in the business.
First-Year Allowance
In the UK, a special capital allowance against corporation tax that is granted in the year of purchase of an asset in place of the standard writing-down allowance of 25%.

Accounting Terms Lexicon

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