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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Capital allowances
what is capital allowance and how does it save us tax
Capital allowances are tax allowable depreciation. They reduce the taxable profit, and a lower taxable profit means less tax payable i.e. a saving in tax.
This is all explained in detail, with examples, in my free lectures on investment appraisal with tax.
The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
