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Where Taxpayers and Advisers Meet

Are domain names limited life assets?

ElisaM
Posts:1
Joined:Tue Nov 08, 2016 2:50 pm
Are domain names limited life assets?

Postby ElisaM » Sun Feb 05, 2017 2:13 am

I bought a domain name 10 years ago and forgot about it; the annual renewal cost just kept going on my credit card (something like £5 a year).

I then got an approach out of the blue from a company who bought it for £20k.

I need to declare this on my self assessment. 2 quick questions:

1. I assume if anything this is CGT rather than income tax as it's a personal possession and nothing to do with my day job (correct)?

2. Domain names are actually rented on an annual basis from a domain registrar. You have to pay a renewal fee every year for that year's registration, otherwise the domain is deregistered and someone else can register it. Does this mean it's a limited lifespan asset and except from CGT? https://www.gov.uk/capital-gains-tax-pe ... d-lifespan

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Are domain names limited life assets?

Postby bd6759 » Mon Feb 06, 2017 7:52 pm

The exemption described loosely in that linke is the exemptions for chattels. Chattels are tangible moveable objects. A domain name is an intangible asset.

The cost of the domain name was probably nil (unless you bought it from soemone). Your annual fee is a regsitration fee, not a purchase fee.


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