Hi Forum, I would appreciate if anyone has some time to help me out. For instance I purchase some equipment for my business. There is a laptop, camera, printer, desk, chair etc. The cost of these items is £1000 (ex VAT). Is my understanding correct that every year these items would depreciate by 25% and therefore after 4 years their value would be £0 in terms of my accounting records? Therefore every year I will reduce my corporate tax liability by £250 due to this depreciation? Obviously in the real world they would still be worth something. For example if I sell all this equipment after 4 years for say... £200. How would this money I receive be treated formally? As a profit made by selling stock that has a purchase price of £0?