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Post Info TOPIC: Capitalisation
Kitty37


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Capitalisation
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Hiya! One of my clients has purchased Sage instant accounts this year and I am wondering whether to capitalise it and claim AIA. Has anyone any thoughts on this?



-- Edited by Kitty37 on Monday 16th of January 2012 10:06:45 AM



-- Edited by Kitty37 on Monday 16th of January 2012 10:07:03 AM

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Robert Pearce


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Although the tax impact of the options available to you  - (i) capitalise and get 100% AIA or (ii) treat as a revenue expense and get 100% relief -  is the same,  I would tend to capitalise the software if the client intended to use it in the business for a number of years.



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Pearce & Co - Chartered Accountant and Chartered Tax Adviser 

www.pearceandcoaccountants.co.uk

These comments are outline only and are not a substitute for specific professional advice.
Kitty37


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Thanku for your prompt reply....much appreciated.


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