Capital Allowances (UK Specific): The depreciation on a fixed asset is shown in the Profit and Loss account, but is added back again for income tax purposes. In order to be able to claim the depreciation against any profits the Inland Revenue allow a proportion of the value of fixed assets to be claimed before working out the tax bill. These proportions (usually calculated as a percentage of the value of the fixed assets) are called Capital Allowances.

 

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Capital Allowances (UK Specific): The depreciation on a fixed asset is shown in the Profit and Loss account, but is added back again for income tax purposes. In order to be able to claim the depreciation against any profits . . . View Full Definition

Net Capital Requirement: SEC requirement that member firms and nonmember securities broker-dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1.

Net Realized Capital Gains Per Share: Capital gains realized by an investment company minus any capital losses divided by the total number of the company's outstanding shares.

Negative Working Capital: Occurs when current liabilities exceed current assets, which can lead to bankruptcy.