The cost of creating a business website is classed as capital expenditure, and therefore the website costs should be capitalised and depreciated. The ongoing costs of maintaining an existing business website are deductible when incurred. However, the costs involved in upgrading a website are likely to be capital expenditure, requiring the costs to be capitalised and depreciated.
Purchasing Domain Names
Expenditure incurred in acquiring a domain name is classed as capital expenditure and non-deductible. The expenditure incurred in acquiring the domain name is also not depreciable.