Tax treatment of website acquisitions

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I purchased a website, an online retail store that was already generating sales which I now manage. I am looking to acquire more of these sites but I am not sure how these are treated, my accountant has advised websites can be depreciated 10% a year. Looking online it does not seem very clear.

Replies (24)

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By ms998
01st Nov 2018 10:12

You've asked your accountant and got an answer. What was wrong with the answer? If you don't trust your accountant get a new one.

Why anonymous too?

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Replying to ms998:
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By unfairaudible
02nd Nov 2018 10:15

There are different answers online, another accountant, a friend of mine told me something else.

I didn't think it was such an issue, it appears we are all anonymous posting with our usernames anyway?

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Replying to unfairaudible:
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By Tax Dragon
02nd Nov 2018 11:32

Quote:

I didn't think it was such an issue, it appears we are all anonymous posting with our usernames anyway?

So why, apparently, do you need (at least) two?

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By Accountant A
01st Nov 2018 10:22

Quote:

my accountant has advised websites can be depreciated 10% a year.

That seems pretty clear to me. What did your accountant say when you discussed your "online" research with him/her?

Short answer is, if you don't trust your accountant, get a new one. Why would you believe all us randoms on this site rather than the accountant you are paying?

EDIT: ms998's (and TV's) post appeared after mine but we appear to be giving a consistent view!

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Replying to Accountant A:
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By unfairaudible
02nd Nov 2018 10:10

I told him what I was told by others and showed him what I found online. He did not really explain. I like to understand things but it seems everyone here is suggesting people just blindly accept their accountant's advice.

Any recommendations on a new accountant since everyone is so eager I switch? I thought this community would be more knowledgeable.

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By Tim Vane
01st Nov 2018 10:16

You already have an accountant who is advising you, so it is not clear why you think it necessary to post here; are you saying that you do not trust your accountant's advice?

If so, surely the next step is to appoint a new adviser you can trust.

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Replying to Tim Vane:
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By unfairaudible
02nd Nov 2018 10:05

Are you suggesting everyone should blindly trust their accountant and not do any reading of their own? I guess it would be easier for you. I don't think my accountant actually has a problem with this.

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By asm3k
01st Nov 2018 12:45

What is wrong with the posters question?

Everyone has an accountant advising them, is it wrong to seek further advice?

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Replying to asm3k:
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By Martin B
01st Nov 2018 13:53

Did you post the original question?

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Replying to Martin B:
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By Accountant A
01st Nov 2018 13:54

Quote:

Did you post the original question?

It's a "yes" from me.

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Replying to asm3k:
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By Accountant A
01st Nov 2018 13:57

Quote:

What is wrong with my question?

Everyone has an accountant advising them, is it wrong to seek further advice?

Fixed that for you.

(a) Why do you need "further advice" if you trust the advice given?

(b) If you don't trust the advice you have been given, why not change accountant?

(c) This is supposed to be a forum for accountants, not people wanting second opinions on what their accountant tells them. What makes you think anonymous posters on here are better qualified to advise you than your accountant?

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Replying to Accountant A:
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By asm3k
01st Nov 2018 22:39

Not me but my own accountant told me to sign up on here originally.

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Replying to asm3k:
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By Accountant A
02nd Nov 2018 01:14

Quote:

Not me but my own accountant told me to sign up on here originally.

Err, why did he/she do that? And why did you sign up just because your accountant "told" you to?

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Replying to Accountant A:
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By unfairaudible
02nd Nov 2018 11:11

Quote:

Quote:

What is wrong with my question?

Everyone has an accountant advising them, is it wrong to seek further advice?

Fixed that for you.

(a) Why do you need "further advice" if you trust the advice given?

(b) If you don't trust the advice you have been given, why not change accountant?

(c) This is supposed to be a forum for accountants, not people wanting second opinions on what their accountant tells them. What makes you think anonymous posters on here are better qualified to advise you than your accountant?

AccountingWeb has said this is not meant only for accountants and I am welcome to use the forum.

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Replying to unfairaudible:
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By Accountant A
02nd Nov 2018 12:40

Quote:

AccountingWeb has said this is not meant only for accountants and I am welcome to use the forum.

Oh no they didn't!

https://www.accountingweb.co.uk/about-accountingweb

"AccountingWEB.co.uk is the largest independent online community for accounting and finance professionals in the UK "

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Replying to Accountant A:
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By unfairaudible
02nd Nov 2018 12:44

Where does it say only? I spoke to them myself.

Judging from the responses here I can see why I should not rely on advice given here.

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By Tax Dragon
02nd Nov 2018 07:17

You tagged "capital allowances" (a tax rule) but asked about depreciation (an accounting principle).

Could be that part of your confusion stems from conflating two entirely different things.

I see nothing wrong with your accountant's advice, btw, and to change accountant purely on the basis of the above (coupled with what appears to be your own ignorance) seems unjustified.

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Replying to Tax Dragon:
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By unfairaudible
02nd Nov 2018 09:56

Fair enough, I just wanted to see what they had to say since they had advised changing.

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By justsotax
02nd Nov 2018 09:46

LOL... "I just thought this community would be more knowledgeable."

So rather than accept advice off your accountant you look to get clarification from essentially anonymous posters in all but name....why not just ask the question on twitter and take your chances if you are not going to listen to a 'real' person...I despair for the youth of today....

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Replying to justsotax:
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By unfairaudible
02nd Nov 2018 10:01

Yes, I may as well, I actually thought this community would be more professional but it seems I was very wrong. No one said I am not listening to my accountant, I would be naive not to do my own due diligence.

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Replying to unfairaudible:
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By Tax Dragon
02nd Nov 2018 11:31

Due diligence?

What actually is your question?

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By justsotax
02nd Nov 2018 11:33

Seriously - if you are looking for a 'reliable' second opinion then go and pay for the appropriate advice from another qualified accountant/someone who specialises in your sector if you have concerns over the treatment your accountant is proposing.

(I am not sure anyone could argue getting an opinion off a website from an unknown source could be deemed to be 'due diligence' in this context - but I am sure you will).

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Replying to justsotax:
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By unfairaudible
02nd Nov 2018 12:02

I didn't state I was only relying on this forum.

I honestly thought this forum would be more welcoming. The website appears quite useful.

Just delete the thread or let the thread die.

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By justsotax
02nd Nov 2018 13:29

"I didn't state I was only relying on this forum."

And I didn't suggest that (although I would question it if you gave any weight whatsoever to an unknown source)- as others have advised seek an accountant you feel you can trust (or get a paid for 'qualified' opinion) in order to put your mind at rest.

You may or may not like the answer or indeed how it has been conveyed to you but the reality is it is the best way to ensure you get the right answer for you.

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