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Rebranding costs - revenue or capital?

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Rebranding costs - revenue or capital?

Postby simplytax » Tue Jan 23, 2018 5:47 pm

If a services business incurs expenditure on re-branding is there a basis for regarding this as revenue rather than capital expenditure?

Typically such re-branding covers:

1. Re-designed logo and colours with new letterhead, templates, e-mails etc
2. Re-designed sales and corporate literature and brochures.
3. Interior design to office re colours and logo and signs etc
4. Digital marketing strategy and design.
5. New or re-vamped website with new logo, colours and narrative.
6. Search engine optimisation.

Some businesses will need be undertaking a re-branding exercise to refresh their offering more often than others dependent upon their business sector and customers.

If the website is being refreshed and does not have a lot of interaction features and mainly the corporate sale/service offering being advertised online with no income generated from sales online or third party advertising etc can the website costs be regarded as revenue if written off as a cost in the P&L? this seems to be what HMRC manuals infer although a little vague.

I'd appreciate your view on the deductibility of the re-branding type expenditure and website expenditure above.


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