Writing Down Allowance

Writing Down Allowance (WDA) is a tax relief that allows businesses to deduct a portion of the cost of certain assets, like equipment or machinery, from their taxable profits each year. Instead of claiming the full expense immediately, the cost is spread out over several years, reflecting the asset's depreciation or decreasing value over time. This helps businesses reduce their tax bill gradually, aligning expenses with the asset's usable life and ensuring they are not taxed on the full cost upfront.