Summary
Provides information on risks, mitigations and checks to make, to help and support Capital v Revenue expenditure.
The content of this toolkit is based on HMRC’s view of how tax law should be applied. Its application to specific cases will depend on the law at the relevant time and on the precise facts.
Different rules apply if you use the cash basis method of accounting. More information on the rules which apply under the cash basis can be found at cash basis.
It is essential to keep good records to help identify whether a transaction is capital or revenue for tax purposes. Running a limited company: your responsibilities provides further guidance on records to be kept.
Contents
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Provides checks to make and what risks and mitigations to consider, including explanations and examples for acquisition, improvement and alteration of assets.
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Provides checks to make and what risks and mitigations to consider, including explanations and examples for legal and professional fees.
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Provides checks to make and what risks and mitigations to consider, including explanations and examples for financial costs.
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Provides checks to make and what risks and mitigations to consider, including explanations and examples for IT costs.
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Provides checks to make and what risks and mitigations to consider, including explanations and examples for corporate intangible assets.
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Provides general checks to make and what risks and mitigations to consider, including explanations and examples.