Capital allowances
Capital allowances are tax allowances that the owner of an asset can offset against taxable income or profits. They provide a deduction for tax purposes in lieu of the depreciation charged in accounts.

There are various types of capital allowances. The most common and widely available are plant and machinery allowances. The definition of plant and machinery takes in a wide ranging group of fixed assets, from air-conditioning through to elevators. Other types of capital allowances include industrial building allowances (see industrial buildings allowances) and those specific to hotels and commercial buildings in Enterprise zones (see Enterprise Zone).

Capital Gains Tax
Capital Gains Tax (CGT) is a tax charged to individuals on gains made from selling or disposing of assets. Limited companies are charged Corporation Tax on these gains. As far as individuals are concerned, CGT is calculated for each tax year and is charged on the total of that individual’s taxable gains after taking into account certain selling costs and reliefs that can reduce or defer gains, allowable losses they made on assets to which CGT normally applies and the annual exemption (£8,500 for every individual in 2005-6 tax year).

Commercial Property
Land and buildings which are either zoned, designed or intended for use by businesses such as retailers and office workers. Property other than that used for residential purposes (see residential property).

Completion
The point in a property transaction at which the legal transfer of a property from the seller to the buyer is finalised (contracts will have previously been exchanged – see exchange). The buyer can take possession of the property from the completion date.