Non-capital expenditures generally have a lower cost and shorter useful life. An example of a lower-cost item that would be classified as a non-capital expenditure would be machinery components. Regular maintenance on a piece of revenue-producing machinery would also be considered a non-capital expense. Expenditure that is capital is generally not allowable as a revenue deduction in computing taxable profits. Depending on the nature of the capital expenditure it may be possible to claim capital allowances. There is no single, simple test that can be applied to decide which items are capital expenditure and which are revenue.

Capex, or capital expenditure, is a business expense incurred to create future benefit (i.e., acquisition of assets that will have a useful life beyond the tax year).For example, a business might buy new assets, like buildings, machinery, or equipment, or it might upgrade existing facilities so their value as an asset increases. Apr 17, 2019 · A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period . Examples of capital expenditures are as follows: Buildings (including subsequent costs that extend the useful life of a building) Expense is not the same term as expenditure as well as income is not the same as receipt. Expenditures (and receipts) are associated with cash movements and as such affect the entity´s cash flow. Expenses represent consumption of inputs (material, labor etc.) in order to generate revenue.