Define: Written Down Value

UK Accounting Glossary

Definition: Written Down Value


Quick Summary of Written Down Value


The value of an asset for tax purposes after taking account of it’s reduction in value below the initial cost, as a result of it’s use in the trade.


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What is the dictionary definition of Written Down Value?

Dictionary Definition


The Written-down value (WDV) is the value of an asset for tax purposes after taking account of it’s reduction in value below the initial cost, as a result of it’s use in the trade.

An asset acquired for a trade is eligible for capital allowances.

A writing down allowance of 25% is available in the 1st year of purchase, which is deducted from the initial cost to establish the written-down value.

In following year the written-down value is subject to the 25% writing-down allowance, which is deducted to arrive at the written-down value at the end of the 2nd year.


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Full Definition of Written Down Value



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Written Down Value FAQ's



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https://payrollheaven.com/define/written-down-value/
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Written Down Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 12, 2019 https://payrollheaven.com/define/written-down-value/.
Chicago Manual of Style (CMS):
Written Down Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/written-down-value/ (accessed: November 12, 2019).
American Psychological Association (APA):
Written Down Value. PayrollHeaven.com. Retrieved November 12, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/written-down-value/

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This glossary post was last updated: 5th May 2019.