Trade Marks - Accounting & Tax Treatment
Hi,
I have a client who has started the process of registering several trade marks (EU & UK names & images) around the financial year end of the Limited Company.
The Trade Marks will not be 'registered' as at the year end date but should be approved in the subsequant financial year.
I would appreciate guidence on the accounting and tax treatment for both years.
Many thanks
Sounds like revenue expenditure to me 1 thanks
The trademarks already exist as assets, you are only considering the costs of registering them. Presumably they are internally generated. As such, you can only capitalise them if they have a readily ascertainable market value. I doubt that is the case, and so I'd suggest that the registration costs should be charged to P&L when incurred.
Tax treatment generally follows accounting treatment.