Where can I find information please on the income tax treatment of training costs for the self employed when they are capital expenditure.
Replies (3)
Please login or register to join the discussion.
What income tax treatment?
It's expenditure enhancing the proprietor. So if you sold the proprietor at a later date you could claim it as enhancement expenditure for CGT purposes, but for the fact that the proprietor is tangible moveable property with a deemed useful life of less than 50 years, and so exempt from CGT.
HMRC Business Income Manual
Here is the link http://www.hmrc.gov.uk/manuals/bimmanual/BIM35660.htm
Capital Allowances
Having ascertained that the training expenditure is capital, I have been unable to verify whether one can claim capital allowances on the grounds that the benefit of the training will deteriorate over the years, and if so could it be included in AIA?