Capital allowance - tax question

[GetCarter]

Just a quick question for those that understand these things (I don't). I would ask my accountants but they are now off for a long Easter!

As a sole trader, if I buy tech / plant / machinery for my biz that costs, say £1000 (ignoring VAT for the moment)

..and assuming I pay 40% tax

How much will I get off my tax bill for the year that it ends up in front of HMRC.

Is it £400 for the first year and £240 in the second... etc, as someone once told me a lifetime ago, or has it changed?

GOV website doesn't seem to want to tell me.

TIA.

[BassFlyer]

Well on basis that it qualifies for annual investment allowance its £400 off the tax in year one. There should be a NIC saving depending on just where your income falls. Year 2 all being equal tax bill is £400 higher, which as you have reduced your payment on account might hurt.

[Alpinestars]

You'll get a tax deduction for the whole £1,000 in year 1. That will reduce your tax by £400 (at 40%). No further deductions will apply in future years. Any sales proceeds in future years will be taxed.

[GetCarter]

Thanks chaps.