What is?

Eligible capital property

You may buy property that does not physically exist but gives you a lasting economic benefit. We call this kind of property eligible capital property.
Some examples are goodwill, franchises, concessions, or licences for an unlimited period.

We consider franchises, concessions, or licences with a limited period to be depreciable properties, not eligible capital properties. For details about depreciable properties, see Capital Cost Allowance.

Eligible capital expenditure

The price you pay to buy eligible capital property is an eligible capital expenditure.

Annual allowance

You cannot deduct the full cost of an eligible capital expenditure, since it is a capital cost and gives you a lasting economic benefit. However, you can deduct part of its cost each year. We call the amount you can deduct your annual allowance.

Cumulative eligible capital account (CEC)

This is the bookkeeping record you establish to determine your annual allowance. You also use your CEC account to keep track of the property you buy and sell. We call the property in your CEC account your eligible capital property.
You base your annual allowance on the balance in your CEC account at the end of your fiscal period.
Keep a separate account for each business but include all eligible capital property for the one business in the same CEC account.