BIM67200 - Video traders: contents

This section looks at the taxation of traders offering video tapes on hire.

The tax treatment of DVDs and similar items would follow the same lines.

A tape acquired primarily for resale at a profit is simply stock in trade. The cost of the tape is a revenue expense. Any stock at the end should be valued in accordance with BIM33000 onwards.

A tape acquired for hiring out should not be treated as stock, even if it is to be sold at the end of its useful life.

The following sections look at the ways in which relief for the cost of acquiring hire tapes is available. Whichever basis is used should be followed consistently from year to year.

Where the issue is one of timing, Revenue staff should consider the tax ultimately at issue when deciding how far to pursue enquiries.