UK Depreciation Calculator
Calculate asset depreciation using different methods for accounting, tax planning, and business decisions
Updated with UK capital allowances and depreciation rates for 2025/26
£
Initial purchase price of the asset
years
Expected lifespan of the asset
Depreciation Summary
Annual Depreciation
£4,500
Total Depreciation
£45,000
Monthly Depreciation
£375
Book Value (Year 1)
£45,500
Tax Benefits
Annual Tax Deduction
£4,500
Tax Savings (20%)
£900
UK Depreciation Information 2025/26
Capital Allowance Rates
- Annual Investment Allowance: £1,000,000
- Main Pool WDA: 18%
- Special Rate Pool: 6%
- Cars (low emissions): 100% FYA
- Cars (high emissions): 6% pool
Typical Asset Lives
- Computers & IT: 3-5 years
- Motor vehicles: 4-8 years
- Plant & machinery: 5-15 years
- Office furniture: 7-10 years
- Buildings: 20-50 years
When to Use Each Method
- Straight line: Consistent usage assets
- Reducing balance: Technology/vehicles
- Sum of years: Tax planning
- Units of production: Manufacturing
- Capital allowances: UK tax purposes
Business Considerations
- Match method to asset usage pattern
- Consider tax implications
- Plan for replacement timing
- Factor in maintenance costs
- Review annually for impairment