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Slow growing
A client has set up a new orchid-plant nursery business as a sole trader. The plants will take four to five years to grow before any sales will be generated and therefore trading losses will be made for the first few years.
Our client has set up a website to advertise the business but it is not the immediate intention of the website to generate sales since – as mentioned above – he is not in a position to sell goods certainly not for a few years at least.
Should the initial setting-up costs of the website to be treated as capital expenditure? Clearly he does intend to generate sales in the long term and the website will in time assist in this.
Readers’ advice is welcomed.
Query 17 456 – IT Geek
Charitable ’copter
We have a client who purchased a helicopter...
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