Trade Marks - Accounting & Tax Treatment

Trade Marks - Accounting & Tax Treatment

Didn't find your answer?

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

Replies (1)

Please login or register to join the discussion.

By Steve Kesby
08th Feb 2012 14:56

Sounds like revenue expenditure to me

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.

Thanks (2)