Website development

Tax treatment of website development

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I just want to clarify the position in relation to the development of a website and how this should be treated. From reading the latest HMRC guidance, my understanding is that the design and development costs of a website should be capitalised as plant and machinery where the new website will generate income that will be more than the amount capitalised in the future. This being the case then costs such as the dmain name would also be capitalised and these costs would then qualify for annual investment allowance. Then moving forward any costs associated with maintaining the website will be treated as revenue.

Your opinions would be greatly appreciated. 

Thanks 

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