Domains

[rharper83]

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Hi guys,

After much debate with my other half (who is an accountant) about domain names, and how to categorise them, I thought I'd ask here to see if anyone has any thoughts...

If I buy (rent?) a domain name from Nominet for £6(ish) with the intention of developing it, would that be classed as an asset?

If I do the same with the intention to sell on at a profit, would it be an asset or stock?

If the domain comes from a third-party for say £5k, would the domain still be stock or an asset?

I'm very confused as is she!

Thanks,

Richard

[accelerator]

If I trade domains I treat them as stock. I feel it's just the same as something like an antique dealer. So, I buy at x, sell at y, and the difference is taxable profit.

Renewals are a business cost.

Don't take this as gospel though, but I have asked an accountant. I expect there are other ways of doing it, and that a domain could be treated as an asset under certain circumstances.

Rgds

[rharper83]

Thanks for the thoughts - I kind of agree with you on the domain trading front. You buy at x to sell on for y, so making a profit. You wouldn't buy a piece of machinery in a factory with the intentions of selling on to make a profit - you'd buy it to help make parts or something similar - that would be an asset.

The debate continues here though!

Ta, Rich.