Hello all,

I just wondered if someone could clarify for me whether the upgrade of a computer is a capital cost or not?

My understanding is that a computer upgrade which increase the value of the asset should be treated as fixed assets that depreciates over time, but a collegue of mine thinks that their is a ruling from HMRC that because technology is always changing and that such upgrade would automatically be an enhancement but could still be counted as Revenue Cost.

Thank you.