CIRD25145 - Intangible assets excluded from Schedule 29 as special tax rules apply: web sites in respect of which capital allowances have been claimed

FA02/SCH29/PARA73A

Where expenditure on websites is recognised on the balance sheet under UK GAAP it is treated as expenditure on tangible assets; this is not the case under IAS. On adoption of IAS it may be necessary to recognise expenditure on the creation of a website (that has previously been recognised as expenditure on a tangible asset) as expenditure on an intangible asset.

Where this occurs and an allowance was made to the company under Part 2 of the CAA01 when the asset was recognised as a tangible asset, the website expenditure of the company is excluded entirely from Schedule 29.

Capital allowances will continue to be appropriate for further expenditure by the company on the website.