Capital Allowances Act 2001

45 ICT expenditure incurred by small enterprises

(1) Expenditure is first-year qualifying expenditure if—

(a) it is incurred on or before 31st March 2003,

(b) it is incurred by a small enterprise,

(c) it is expenditure on information and communications technology, and

(d) it is not excluded by section 46 (general exclusions).

(2) “Expenditure on information and communications technology” means expenditure on items within any of the following classes.

• Class A. Computers and associated equipment

  This class covers—

  (a)

  computers,

  (b)

  peripheral devices designed to be used by being connected to or inserted in a computer,

  (c)

  equipment (including cabling) for use primarily to provide a data connection between—

  (i)

  one computer and another, or

  (ii)

  a computer and a data communications network, and

  (d)

  dedicated electrical systems for computers.

  For this purpose “computer” does not include computerised control or management systems or other systems that are part of a larger system whose principal function is not processing or storing information.

• Class B. Other qualifying equipment

  This class covers—

  (a)

  wireless application protocol telephones,

  (b)

  third generation mobile telephones,

  (c)

  devices designed to be used by being connected to a television set and capable of receiving and transmitting information from and to data networks, and

  (d)

  other devices—

  (i)

  substantially similar to those within paragraphs (a), (b) and (c), and

  (ii)

  capable of receiving and transmitting information from and to data networks.

  This is subject to any order under subsection (3).

• Class C. Software

  This class covers the right to use or otherwise deal with software for the purposes of any equipment within Class A or B.

(3) The Treasury may make provision by order—

(a) further defining the kinds of equipment within Class B, or

(b) adding further kinds of equipment to that class.