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Tax Written Down Value

Term

You need to know the tax written down value of business assets when claiming tax relief - with regards to capital allowance.

When buying assets for your business, the full value can be deducted form profits before tax because of the annual investment allowance. Some things don’t qualify for AIA, so you use writing down allowances, and to claim the tax relief through writing down allowances, you need to know the tax written down value.

Tax written down value = Original value - Capital allowances claimed on it.

The original value is the amount the asset was brought into the business for. This can be adjusted down if you’re self employed and the asset is used for personal reasons as well as business usage.

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