A capital allowance introduced in April 2008 that enables businesses to offset 100% of their capital expenditure in any one year against corporation tax, up to a specified limit. The allowance is available to businesses of any size or legal form and cannot be claimed on non-commercial motor vehicles.
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%.
Writing-down allowance (WDA) is a type of capital allowance available to UK traders, allowing the reduction in value of certain assets over time for tax purposes.
