Capital allowances for CGT purposes

Hi
Can anyone tell me what are capital allowances for the purpose of offsetting Capital Gains Tax Liability ?

explain? CGT is about taxing a profit. capital allowances are allowed on an annual basis if the asset is in use at the end of the year. there is no set off.

It could be that the use of the term capital losses refers to presale expenditure of a capital rather than a revenue nature prior to sale for CGT purposes -I have seen various commentators refer to it-any views?

Mod,

You seem to refer to capital losses & capital allowances in your two contributions so far. These terms aren't really interchangeable

Capital losses are basically losses arising on the sale of a capital asset. So if you sell some shares at a gain you have a capital gain and pay tax accordingly. If you sell shares and have a capital loss, no tax is due and the loss can be set against capital profits on other assets in same period or carried forward indefinitely.

Presale expenditure on capital items e.g. new roof on house before selling represents enhancement expenditure and can be deducted as a cost of acquisition and indexed if applicable

Hope this explains