Equal Figures Bookkeeping

Business & Accounting Spreadsheets

Writing Down Allowance

Writing down allowance can be used for business assets either when you have already claimed the full AIA limit, or with cars or on items you purchased before you started using it in your business used cars, gifts. The tax relief is given on part of the value of assets held in a pool.

Example

A self employed individual purchased a business car with a CO2 value of 110 g/km, which would fall in the 18% allowance. The value of the car is £27,000 and the claim would therefore be as follows:

Written down value start £27,000
Writing down allowance (18%) £4,860
Written down value to carry forward £22,140

The claim for writing down allowance would be £4,860 and would deduct that figure from their profits for tax purposes.

The remaining figure (£22,140 in the above example), would be carried forward to the main pool on next year's accounts where it can qualify for the relevant percentage allowance.

The accounting/bookkeeping systems sold on our website have Capital Allowance Calculators included.