Website purchase (asset?)

[davey85]

Should the purchase of a website (that will be used to generate revenue) go down as an asset or an expense?

If an asset, should this go down as an intangible asset and will tax relief be received in year of purchase similar to tangible assets?

 

[MyAccountantOnline]

This will answer your question

https://www.att.org.uk/tax-treatment-software-website-costs

 

[davey85]

Thanks.

I am not clear if amortisation of the website is an allowable expense for tax purposes?

 

[MyAccountantOnline]

Thanks.

I am not clear if amortisation of the website is an allowable expense for tax purposes?

No its not both depreciation and amortisation are not allowable costs.

 

[NicoJ]

No its not both depreciation and amortisation are not allowable costs.

Where this is the case, the tax relief will follow the accounting treatment with amortisation or impairment of the asset usually deductible for tax purposes as and when recognised in the accounts.

This is taken from the link that you've posted so I would say it is allowable. Otherwise as there are no capital allowances available on intangible assets there would be no tax relief on the purchase.