Writing down allowance
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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 which applies in the absence of initial or first year allowances. The rate applies on a straight line basis for industrial buildings, hotels, agricultural and forestry buildings and works. A reducing balance basis is used for all other assets.
Total writing down allowances may not exceed the balance of expenditure after deducting initial or first year allowances.
