1. The increase in capital allowances is very welcome.

2. The lessor receives capital allowances against tax. 2.

3. The asset belongs to the lessor, and so capital allowances are not available to the company.

4. One hundred percent. capital allowances could lead to investment decisions being made entirely for tax reasons.

5. Consider the differential treatment of capital allowances, stamp duty, corporation tax and VAT.

6. The system of capital allowances is the system of depreciation permitted by the Inland Revenue in arriving at taxable earnings.

7. Capital allowances reduce a company's tax liability and thus improve its after-tax cash flow.

8. But the doubling of capital allowances for small-and medium-sized businesses is welcomed by all sides of the industry.

9. The capital allowances differ for different classes of capital assets.

10. Further increases in capital allowances for small and medium enterprises would also be very welcome.

11. These were partly offset by grants and capital allowances totalling ￡9.2 million.

11.

12. This ensures that the sum of capital allowances is equal to the real depreciation incurred.

13. Timing of tax cash flow. Capital allowances reduce a company's tax liability and thus improve its after-tax cash flow.

14. The company lost it's capital allowance on the excess on its investment.

15. Capital allowance consist of allowance on plant and machinery and allowance on industrial buildings.

16. The cut in car tax and the increase in capital allowances will also help to boost confidence.

17. This is because of the limited partnerships' tax losses while drilling, and the availability of capital allowances.

18. Using a bank overdraft, would incur an interest cost, with tax capital allowances being available as above.

19. Retail developments will not qualify for industrial buildings allowances. Capital allowances on plant and machinery.

20. The other concession was that there would be 100 percent capital allowances on both industrial and commercial buildings.