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bigduckontax, Accountant
Category: Tax
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I am considering purchasing rights to royalties from musical

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Hi I am considering purchasing rights to royalties from musical works (sound recordings / publishing rights). I wanted to understand what the UK tax rules on allowed amortisation (time period + method) and if it is only allowable within a company (or can it be done as an individual owner).

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Amortisation, or rather depreciation, is not allowed against either Income Tax (IT) or Corporation Tax (CT): sorry.

Customer: replied 12 days ago.
ok - sorry should have used the term "capital allowance" instead of depreciation or amortisation....what are the rules re how i can reduce my tax bill for any income generated post purchasing these music assets

These would be covered as plant and machinery, the definition is very wide. The royalties purchased would be embraced by the Annual Investment Allowance (AIA) which allows you to write off these expenses at 100% in the year of acquisition.

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Thank you for your support.