1093 - First year allowances at 40% or 50%

For most new items which you have bought you can claim 'first year allowances'. Small businesses can claim 50% first year allowances on their investments in equipment and machinery, excluding cars, long life assets or leased machinery. Medium sized businesses can claim 40%. These items, at their reduced value, should go into the main pool in the 2nd year, unless they have been used privately in which case they will go into their own 'single asset' pool. (You do not have to claim 1st year allowance if you do not want to, instead add the cost to the relevant pool.)