Writing-down allowance (UK capital allowances)
Writing-down allowances give tax relief over time on qualifying expenditure remaining in the appropriate pool or separate asset calculation. The rate, length of accounting period, additions, disposals and any private-use adjustment depend on the asset and applicable law. ACCA’s Finance Act 2025 article uses an 18% main-pool rate and 6% special-pool rate in its year-ended 31 March 2026 illustration. Later current rates must not be substituted for the examinable period.
Worked example
For a 12-month period ending 31 March 2026, assume an eligible main-pool tax balance of £10,000, no changes or restrictions and the 18% rate used in ACCA’s FA2025 illustration. The writing-down allowance is £1,800 and the remaining balance is £8,200.
Common mistake
Using accounting depreciation instead of the tax allowance, applying an undated rate, or ignoring period-length and private-use conditions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |