Month: August 2017

Franchise fee tax deductible?

A very clear answer is given in HMRC Agent tool kit – Capital Vs Revenue: Page 15

Sole Trader/Partnership Capital Expenditure. No deduction in computation of trading profits.

Deduction available under Capital Gains Tax on sale.
Companies Special Corporate intangible assets regime applicable.

Deduction available as per accounting treatment – amortisation over the lifetime of the franchise agreement is normally allowable.

This again demonstrates how useful agent toolkits are and should be used regularly.

Link to Took kit

Moral of the story:
When taking a franchise always take it under a limited company.