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Brand / Packaging design

Ctax relief

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Hi I have a new client who has paid £10,000 in start up costs for a brand / logo and packaging to be designed.

Given the amount and this is creating and enduring asset this would be capitalised. Would the amortisation be allowed on it and over what period under FRS105 would be appropriate?

Many thanks

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Caroline
By accountantccole
21st Jan 2020 14:22

If it is a new start up, I would have thought it would be difficult to justify the brand having much value at all, unless it has grown really fast?

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By paul.benny
21st Jan 2020 14:34

Agree with accountantccole.

Think back to first principles of the matching concept and of prudence: if you capitalise and amortise this cost, what are the revenues you are matching it with and how certain are they?

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By Tax Dragon
21st Jan 2020 14:44

Is this another of the many cases where the accounts and tax treatment may differ? (You tagged tax subjects and asked an accounts question. They ain't the same thing.)

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