Are domains assets?

[sooty]

Hi,

Does anyone know the tax treatment of domains? I'm particularly interested in the UK tax treatment.

Are they technically assets and subject to capital gains tax?

Should the profits just be registered in your personal tax return?

Or do they constitute casual earnings and you should therefore register as self employed???

I'm puzzled to say the least!

By the way, I'm talking about earnings that are too small to constitute forming a company.

 

[DNQuest.com]

I reside in the US, but I treat my domain registrations/renewals as domain lisence )expense) and any income I receive as revenue for domain sales (income). They are not assets as in equipment and such. Technically, we lease domain name, nobody actually owns them except for the operator of the domian extension.

So if I have $700 in domain lisence, I would show that as an entry, and $2000 sales would be revenue for domain sales. Net profit of $1300 would be calculated in soe form. I run mine through my business so I don't worry abou personal expense. If you use your personal expense, in the States we would use Schedule C to show expense/income.

As far as declaing if your self employed, in the US, you do need some sort of proof of it (checking account).

Hope this helps.