WDA meaning in Business ?

Capital allowances is the practice of allowing tax payers to get tax relief on their tangible capital expenditure by allowing it to be deducted against their annual taxable income. Generally, expenditure qualifying for capital allowances will be incurred on specified tangible capital assets, with the deduction available normally spread over many years. The term is used in the UK and in Ireland.

Capital allowances are a replacement of accounting depreciation, which is not generally an allowable deduction in UK and Irish tax returns. Capital allowances can therefore be considered a form of 'tax depreciation', a term more widely used in other tax jurisdictions such as the US. If capital expenditure does not qualify for a form of capital allowance, then it means that the business gets no immediate tax relief on such expenditure.