Intangible Assets - Sole Trade

Coldplayer

Can sole traders subject to income tax claim capital allowances on intangible assets or is it exclusive to companies?

If they can't claim CA can they take the cost of the intangible asset as an allowable deduction?

Thanks

barneystinson

Coldplayer wrote: »

Can sole traders subject to income tax claim capital allowances on intangible assets or is it exclusive to companies?

If they can't claim CA can they take the cost of the intangible asset as an allowable deduction?

Thanks

What's the asset?

Coldplayer

Web Design for 100k put through the p&l.

dogsears

Coldplayer wrote: »

Can sole traders subject to income tax claim capital allowances on intangible assets or is it exclusive to companies?

If they can't claim CA can they take the cost of the intangible asset as an allowable deduction?

Thanks

As you suspect, capital allowances on intangible assets is for companies only.:(

If you've charged the cost to the P & L then the working assumption is that the amount is allowed for tax subject to any specific tax principle that would disallow it - the most obvious being that the cost is capital. Best discuss the accounting treatment with the accountants, focussing on why they think it OK to charge it all to the P & L in one year, if they feel firmly about it there is probably a good case for taking the deduction.

More than that is really beyond what could be covered here - best dealt with in detail with your advisers.

Coldplayer

Cheers, thought as much

so where does that leave me with regards to the cost to the p&l? can it be left in as an allowable deduction for IT purposes?

dogsears

Coldplayer wrote: »

Cheers, thought as much

so where does that leave me with regards to the cost to the p&l? can it be left in as an allowable deduction for IT purposes?

see edit above