In the USA, betterment refers to the replacement of a major item of plant or machinery by one that will provide better performance, which involves capital expenditure.
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.
In tax law, plant and machinery refer to the equipment required to operate a business, qualifying for capital allowances which facilitate tax deductions on business investments in these assets.
A progress payment is a payment made to a contractor based on the stage of work completed at a specified date, as certified by an agreed authority. It is commonly used in long-term contracts such as civil engineering, shipbuilding, or large items of plant and machinery.
A wasting asset is an asset that has a finite life span and steadily declines in value over time, typically due to physical wear and tear or obsolescence.
Writing-down allowance (WDA) is a type of capital allowance available to UK traders, allowing the reduction in value of certain assets over time for tax purposes.
