Website costs (intangible assets) tax relief

Website costs (intangible assets) tax relief

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Now that tax relief is denied on the amortisation of goodwill (intangible assets), is this also denied on other intangible assets such as website development costs?

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Portia profile image
By Portia Nina Levin
27th Nov 2015 12:25

No. Because it is either revenue expenditure or it qualifies for AIA.

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Replying to johnjenkins:
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By hallsi
28th Nov 2015 09:29

AIA

thank for your reply.

are you sure it qualifies for AIA?

I previously depreciated and claimed this under the intangibles regime.

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By Tim Vane
28th Nov 2015 10:24

Even though it would seem natural to treat a website as an intangible asset, HMRC have stated that they have no issue with it being treated as plant & machinery. If HMRC accept that it is plant and machinery then it is eligible for AIA, as Portia has said.

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By Howard Marks
28th Nov 2015 13:57

Agree with the above

AIA is fine

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Portia profile image
By Portia Nina Levin
29th Nov 2015 12:33

I think that before the OP goes claiming AIA though, they should consider whether they have properly capitalised the expenditure in the first place, in accordance with UITF 29 or section 18 of FRS 102, as appropriate

https://frc.org.uk/Our-Work/Publications/ASB/UITF-Abstract-29-Website-de...

https://www.frc.org.uk/Our-Work/Publications/Accounting-and-Reporting-Po...

Reference should also be made to section 13 of HMRC's capital v revenue toolkit.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...

Websites are regarded as essentially being computer software to which HMRC's manuals at CA23400 , CIRD25180 and CIRD25190 apply, if the expenditure is capital.

http://www.hmrc.gov.uk/manuals/camanual/CA23400.htm

http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD25180.htm

http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD25190.htm

Am I sure indeed. How very dare you!

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Replying to Portia Nina Levin:
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By NewStudent
19th Jun 2017 02:26

Portia Nina Levin,
many thanks!

You helped me as well regarding my company's website.

But I have some extra question regarding the intangible assets - what if is a company promotional (corporation) video?

Am I right saying that is clearly an asset because in a case where company will be sold, this video will be included (and will exist as well) into the price and therefore is an asset that you sell with your company....?

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