Written question asked by Anneliese Dodds (Labour) on Friday, 12 March 2021, in the House of Commons. It was due for an answer on Wednesday, 17 March 2021 (named day). It was answered by Jesse Norman (Conservative) on Wednesday, 17 March 2021 on behalf of the Treasury.
Software: Capital Allowances
- Question
-
To ask the Chancellor of the Exchequer, whether investment in software can qualify for 130 per cent super-deduction capital allowance in 2021-22 and 2022-23 under section 815 of the Corporation Tax Act 2009.
- Answer
-
The super-deduction capital allowance will allow companies to reduce their taxable profits by 130% of the value of their investment in plant and machinery.
Investment in software can be classified as either a revenue expenditure, in which case it is deductible for tax purposes, or a capital expenditure, in which case it is generally addressed through the intangibles regime instead. This means software would be ineligible for the super-deduction.
However, if a company wishes, they can choose to make an election under s815 Corporation Tax Act 2009 to remove software from the intangibles regime and instead claim capital allowances. In this case, the super-deduction will be available.
Secondary information
- Type
- Written question
- Reference
- 167942
- Session
- 2019-21
- Subjects
- Software Capital allowances
- Legislation
- Corporation Tax Act 2009
- Link
- View this Written question on www.parliament.uk
Librarians' tools
- Timestamp
- 2023-06-15 12:24:30 +0100
- URI
- http://data.parliament.uk/writtenparliamentaryquestion/commons/2019-21/167942
- In Indexing
- http://indexing.parliament.uk/Content/Edit/1?uri=http://data.parliament.uk/writtenparliamentaryquestion/commons/2019-21/167942
- In Solr
- https://search.parliament.uk/claw/solr/?id=http://data.parliament.uk/writtenparliamentaryquestion/commons/2019-21/167942