Written Down Value

The residual value after a claim for 'writing down allowance' has been made on a business-related asset is called the 'written down value (WDV)'. This value will be recorded in the 'books' of the business for potential further claim of writing down allowance in order to offset profit.  The further claim can be utilised to maximum efficiency as it can be 'disclaimed' in a particular tax year, leaving the value intact, if it is not tax-efficient to make the claim. If, however, an asset is disposed of at greater value than it's 'written down value' (or the market value of the asset is higher) it will add to the income of the business and potentially generate additional taxation.