Now that tax relief is denied on the amortisation of goodwill (intangible assets), is this also denied on other intangible assets such as website development costs?
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Even though it would seem natural to treat a website as an intangible asset, HMRC have stated that they have no issue with it being treated as plant & machinery. If HMRC accept that it is plant and machinery then it is eligible for AIA, as Portia has said.
I think that before the OP goes claiming AIA though, they should consider whether they have properly capitalised the expenditure in the first place, in accordance with UITF 29 or section 18 of FRS 102, as appropriate
https://frc.org.uk/Our-Work/Publications/ASB/UITF-Abstract-29-Website-de...
https://www.frc.org.uk/Our-Work/Publications/Accounting-and-Reporting-Po...
Reference should also be made to section 13 of HMRC's capital v revenue toolkit.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...
Websites are regarded as essentially being computer software to which HMRC's manuals at CA23400 , CIRD25180 and CIRD25190 apply, if the expenditure is capital.
http://www.hmrc.gov.uk/manuals/camanual/CA23400.htm
http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD25180.htm
http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD25190.htm
Am I sure indeed. How very dare you!
Portia Nina Levin,
many thanks!
You helped me as well regarding my company's website.
But I have some extra question regarding the intangible assets - what if is a company promotional (corporation) video?
Am I right saying that is clearly an asset because in a case where company will be sold, this video will be included (and will exist as well) into the price and therefore is an asset that you sell with your company....?