Finance Act 2003 (c. 14)

Part 7 U.K. Income tax, corporation tax and capital gains tax: general

Capital allowances and related matters U.K.

166 Expenditure on software for sub-licensing U.K.

(1) Section 45 of the Capital Allowances Act 2001 (first-year allowances for ICT expenditure incurred by small enterprises) is amended as follows.

(2) In subsection (1)(d) (expenditure must not be excluded by general exclusions in section 46) at the end insert “ or subsection (4) below ”.

(3) After subsection (3) insert—

“(4) Expenditure on an item within Class C is not first-year qualifying expenditure under this section if the person incurring it does so with a view to granting to another person a right to use or otherwise deal with any of the software in question.”.

(4) This section applies in relation to expenditure incurred on or after 26th March 2003.