Are domains assets?

[sooty]

Hi,

Does anyone know the UK tax treatment of domains?

Are they technically assets and subject to capital gains tax?

Should the profits just be registered in your personal tax return?

Or do they constitute casual earnings and you should therefore register as self employed???

I'm puzzled to say the least!

 

[retired member 1]

I've often wondered this, I know they are in the US as when park or use adsense it is a requirement to give them your Tax ID.

 

[domaingenius]

Enough of that talk,lol.
DG

 

[keys]

Hi,

Does anyone know the UK tax treatment of domains?

Are they technically assets and subject to capital gains tax?

Should the profits just be registered in your personal tax return?

Or do they constitute casual earnings and you should therefore register as self employed???

I'm puzzled to say the least!

The answer to this question will vary according to the circumstances.

If you mainly register and sell them, then domains are stock like any other business.

Domains should be treated as assets if they are used by a business, on asset sales you can use CGT allowances.

Any significant sales that would be viewed as business activity by the tax office should be included in annual accounts, whether sole trader or other entity.

 

[DNTango.com]

Just to reiterate what keys said, it depends how you treat them in terms of your financial reporting. They could be displayed as intangible assets. With domains, you can play around with the law quite a bit - depending on how you utilise them and how you record them in your books, etc.

Seek advice from your accountant if in doubt.