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Free depreciation

A term used in taxation where a business is allowed to depreciate fixed assets for capital allowance purposes, at whatever rate it chooses; e.g. it could write off an asset in the accounts of the first year in which it is used, or it could stretch the writing-off period over a vast number of years, quite irrespective of the method of depreciation adopted for normal accounting purposes. The period chosen will depend on various factors but chiefly on the liquidity of the business and the current, and anticipated, rate of taxation.

Reference: The Penguin Business Dictionary, 3rd edt.