What is a written down value?

Written down value (WDV) is the current book value of a business asset after deducting accumulated depreciation from its original cost. It represents what the asset is worth on your company's books at any given time.

How do you calculate written down value?

Calculate WDV using the formula: Original Cost - Accumulated Depreciation = Written Down Value. For example, if you bought equipment for £10,000 and have claimed £3,000 in depreciation, the WDV is £7,000.

What's the difference between written down value and market value?

Written down value is the accounting book value after depreciation, whilst market value is what you could actually sell the asset for today. Market value can be higher or lower than WDV depending on market conditions.

Do I need to track written down values for tax purposes?

Yes, HMRC requires accurate WDV tracking for capital allowances claims. Your WDV determines how much depreciation you can claim each year and affects capital gains calculations when you sell assets.

What happens to written down value when I sell an asset?

When you sell an asset, compare the sale price to the WDV. If you sell for more than WDV, you may have a balancing charge (taxable). If you sell for less, you may have a balancing allowance (tax deductible).

Can written down value be zero?

Yes, if you've claimed depreciation equal to the asset's original cost, the WDV becomes zero. However, the asset may still have market value and continue to be useful to your business.

How does written down value affect my business accounts?

WDV appears on your balance sheet as the net book value of fixed assets. It affects your company's total asset value and is crucial for accurate financial reporting and tax compliance.

Do I need an accountant to manage written down values?

Whilst you can track WDV yourself, an experienced accountant ensures accuracy, maximises your capital allowances claims, and handles complex calculations. GoForma's specialists can help optimise your asset depreciation strategy.

What are Written Down Values?

Published Apr 13, 2021

Last updated Jan 29, 2026

5 min read

Written by Jordan MaceyAAT

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<p>Written-down value, otherwise known as the book value or net book value is the value of an asset after accounting for depreciation or amortisation. It represents the present worth of an asset from an accounting perspective.</p>

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What are Written Down Values?

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