Written Down Allowance

Allowances generated by eligible assets in a business are called 'writing down allowances (WDA)'. They can be used to offset profit and associated taxation.

The percentage of asset cost that can be claimed depends on the type of claim and can be up to 100% of the cost, or a standard claim (usually 18%) on items such as cars, etc., used in the course of the business. Any residual value left in the asset following the claim can be carried forward for future claim, when it is efficient to do so and will normally be subject ongoing to the 18% (max) of residual value (see 'Written Down Value').