I have a client who has bought out a competitor businees for £10,000, they have agreed a pay back period of 3 yrs, there is no stock involved, just a contacts list and a client list, there is no interest on the purchase price.

I view this as a capital item purchase as it has improved the growth of their turnover substancially and would add it into the capital allowances pot, therefore I would like to claim the 20% allowance. I'm interested in how others view this and whether anybody has any advice regarding this?

cheers

steve