SCHEDULES

SCHEDULE 2Transitionals and savings

Part 15Research and development

Expenditure on software or consumable items

122

1

In relation to expenditure incurred before 1 April 2004, Part 13 applies with the following modifications.

2

For “software or consumable items” in each place where it occurs, substitute “ consumable stores ”.

3

For sections 1125 and 1126 substitute—

1125Consumable stores

1

For the purposes of this Part expenditure on consumable stores means expenditure that would be treated as expenditure on consumable stores in accordance with normal accounting practice.

2

For the purposes of this Part expenditure on consumable stores is attributable to relevant research and development if the stores are employed directly in such research and development.