Normal Wear-And-Tear

Normal wear and tear, in accounting, is the normal physical degradation of an asset from ongoing usage, otherwise known as depreciation.

Normal wear and tear gradually reduces the value of an asset, even if properly maintained. It is accounted for through depreciation.

In the UK, there are predetermined rates in calculating the wear and tear allowances for business assets that are tax deductible, such as vehicles or furniture and fixtures in a rental property.