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Logo design - corporation tax

Capital or revenue?

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Client startup  co has spent about £300 on an externally designed logo. He has recorded it as an intangible fixed asset. Do readers here agree with this treatment and if so that it would fall within the CT intangible fixed assets scheme and be allowable on the basis of annual depreciation?

An enduring asset has undoubtedly been created, but on the other hand it is not one that will have any identifiable future revenue stream, and on that basis it has the features of general marketing expenditure.

Any thoughts much appreciated.

Replies (3)

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Caroline
By accountantccole
18th Dec 2019 12:01

I'd stick it in the P&L for that value. If it is a start up the logo can't have any built in value this early on

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RLI
By lionofludesch
18th Dec 2019 13:20

Too small for me to capitalise.

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By Tax Dragon
18th Dec 2019 16:28

The question was about tax - it asked whether you would pop the £300 in the box labelled "capital items expensed".

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