writing-down allowance

writing-down allowance
= WDA
A capital allowance available to a UK trader; from 1 November 1993 it became the only allowance generally available for plant and machinery used in trade, although first-year allowances have at times been reintroduced for specific types of equipment or types of business. Any additions to plant and machinery are added to the written-down value of assets acquired in previous years and the writing-down allowance is calculated as 25% of the total. For cars the allowance is restricted to £3000, for vehicles whose initial cost is in excess of £12, 000. For industrial buildings the allowance is calculated at 4% of the initial cost, on the straight-line method For certain long-life assets it is calculated at 6% in the same way.

Big dictionary of business and management. 2014.

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  • writing-down allowance — ➔ allowance * * * writing down allowance UK US noun [C] ACCOUNTING, FINANCE, TAX ► the percentage of the value of assets that a company can include in its profit calculations for a particular period to reduce the amount of tax it pays: »The… …   Financial and business terms

  • Writing down allowance — Writing down allowance, in United Kingdom Taxation, is the annual rate at which capital allowances can be claimed. This rate is reduced or extended if the chargeable period is shorter or longer than one year.The writing down allowance is the rate …   Wikipedia

  • writing-down allowance — WDA A capital allowance available to a UK trader; from 1 November 1993 it is the only allowance generally available for plant and machinery used in trade, although first year allowances have occasionally been introduced for specific types of… …   Accounting dictionary

  • allowance — al‧low‧ance [əˈlaʊəns] noun 1. [countable] an amount of money that someone is given regularly or for a special reason: • She earns a package worth $1 million, including a $15,000 clothing allowance. ˌcost of ˈliving alˌlowance [countable] HUMAN… …   Financial and business terms

  • capital allowance — ➔ allowance * * * capital allowance UK US noun [C] (also investment allowance) ► ACCOUNTING, TAX an amount of money that a business spends to buy buildings, equipment, vehicles, etc., which it can use to reduce the tax on its profits: »A 100%… …   Financial and business terms

  • written-down value — WDV The value of an asset for tax purposes after taking account of its reduction in value below the initial cost, as a result of its use in the trade. An asset acquired for a trade is eligible for capital allowances A writing down allowance of… …   Big dictionary of business and management

  • written-down value — WDV The value of an asset for tax purposes after taking account of its reduction in value below the initial cost, as a result of its use in the trade. An asset acquired for a trade is eligible for capital allowances. A writing down allowance of… …   Accounting dictionary

  • first-year allowance — In the UK, a special capital allowance against corporation tax that is granted in the year of purchase of an asset in place of the standard writing down allowance of 25%. Various first year allowances have been made available at various times. In …   Accounting dictionary

  • first-year allowance — In the UK, a special capital allowance against corporation tax that is granted in the year of purchase of an asset in place of the standard writing down allowance of 25%. Various first year allowances have been made available at various times. In …   Big dictionary of business and management

  • capital allowance — a set off for tax in relation to expenditure on capital rather than revenue. Under the Capital Allowances Act 1990, the cost of capital assets acquired by a trader for the purposes of his business may be deducted from his total profit. The nature …   Law dictionary

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