Balancing allowance is the allowance available on disposal of an asset when the proceeds are less than the written-down value for tax purposes. It compensates for the loss in value of the asset beyond its depreciation.
The charge that may be assessed to corporation tax on the disposal of an asset when the proceeds realized on the sale of the asset exceed the written-down value for tax purposes.
Written-down value (WDV) is the value of an asset for tax purposes after accounting for reduction in value below the initial cost due to its use in trade. It indicates the remaining value of the asset after appropriate capital allowances.
Written-Down Value (WDV) refers to the depreciated value of an asset after accounting for depreciation or amortization up to a specific date. It represents the current book value of an asset in the financial statements.
