Franchise License Taxation Allowances | AccountingWEB

Franchise License Taxation Allowances


I have just taken on a client who has bought a franchise license for £10,000, which will expire in 5 years.  He is a Sole Trader.

I will be treating this as an intangible fixed asset and write it off in the accounts over a 5 year period.

However, I have read somewhere that there is no tax relief unless it is purchased through a Ltd Co.

The Question is: 


Does this mean, there are no reliefs of any sort for taxation purposes? Is there anything I can use to reduce his tax bill, in light of this purchase? 

 Many Thanks for your advice in advance.



mr. mischief's picture

correct - mostly

mr. mischief | | Permalink

I think you are mostly correct.  However, does any of the fee relate to revenue items such as training or HR / admin. support - which can potentially be written off to profit?

That part which is a licence to operate the business is an intangible in my view.

Franchise License Taxation Allowances

Carolynne | | Permalink

Hello Mr Michief

Thanks for the quick response.

It just seems so unfair that sole traders are so disadvantaged by not being allowed any tax allowances.

-- Carolynne

Sole Trader Tax Relief

vince | | Permalink

 If you can find anything fair about the tax regime let me know :-)

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