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Treatment of Ltd co personalized no plates

Should tax relief be available on the amortization??

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Hi all

I am preparing a set of accounts for a small ltd co that have purchased some personalised no plates between Feb 2020 to December 2020.

I have established based on what the no plates are that they aren't really of a personal nature and can therefore be treated as an intangible asset within the accounts.

The no plates have a registration period of 10 years, so should be amortised as such.

I am slightly unsure as to whether CT relief is available on the amortisation?

If someone reading this can offer some input, I'd be most grateful!

TIA

 

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By Hugo Fair
27th Dec 2021 13:54

This is your 6th post ... and (so far) you've not once replied to any of the responders (either to answer a question or merely to say 'thanks'), so I'm not sure it's worth my while to ask you questions, but:

"no plates have a registration period of 10 years"
Although this was news to me, a quick google search reveals via https://www.gov.uk/personalised-vehicle-registration-numbers/renew-priva...
* You must renew your right to use your private (personalised) number every 10 years IF (my emphasis) it’s not being used on a vehicle; and
* You can renew it for up to 10 years, and it does not cost anything to do.

So ... why (as in for what purpose) did the company purchase the plates? And what makes you think they are "an intangible asset"? And why, if re-registration for a further 10 years costs nothing, would you amortise the original purchase over 10 years anyway?

What is your role in all this? And what are you trying to achieve?

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Replying to Hugo Fair:
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By swsaltd
27th Dec 2021 14:21

Hi Hugo - thank you very much for your reply - I take your point re my lack of using the forum to answer questions, but did think I had made use of the thanks button! - Either way point taken.

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Replying to swsaltd:
Stepurhan
By stepurhan
27th Dec 2021 19:08

swsaltd wrote:
I take your point re my lack of using the forum to answer questions, but did think I had made use of the thanks button! - Either way point taken.

No-one can tell if you have used the thanks button. Even if they could, a single mouse-click is bare minimum effort.

To be honest, whilst answering other questions will get you more goodwill, the lack of clear appreciation is probably the more imporatnt part. Other members are making an effort to give you answers. Showing proper appreciation for that effort does not seem a lot to ask.

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RLI
By lionofludesch
27th Dec 2021 14:01

What's the business purpose of these number plates ?

It's been debated many times over the last twenty years and HMRC won't accept that there is any. Capital gains acquistion cost relief only. Calling it "amortisation" won't change things.

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By Paul Crowley
27th Dec 2021 14:36

Should tax relief be available on the amortization??

No

Any sale is subject to CGT type Corp tax

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By David Ex
27th Dec 2021 16:58

swsaltd wrote:

small ltd co that have purchased some personalised no plates between Feb 2020 to December 2020 …. they aren't really of a personal nature

You’ve told us what’s happened but not why, which might be relevant. Has the company bought to resell at a profit? If that was the case, presumably stock would be the appropriate category.

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