Computation of capital allowances clarifies eligible components and ownership and use conditions for business assets.

Computation of capital allowances aggregates depreciation of business capital assets, initial depreciation, terminal allowance and scientific research and development allowance. Depreciation, initial depreciation and terminal allowance are allowed where the asset is owned, wholly or partly, and used for the business. The ownership condition does not apply to capital expenditure on buildings held under lease or other right of occupancy, and an asset is deemed owned by a lessee under a financial lease.

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