Capital Allowances Act 2001 section 45

ICT expenditure incurred by small enterprises

Section 45 provided a time-limited first-year allowance for small enterprises that spent money on information and communications technology (ICT) equipment, covering computers, mobile devices, networking equipment and related software.

• Expenditure on ICT by a small enterprise qualified for 100% first-year allowances if incurred on or before 31 March 2003 and not otherwise excluded under section 46.
• Qualifying ICT fell into three classes: Class A covered computers, peripherals, networking and cabling equipment, and dedicated electrical systems for computers — but not computerised control systems that were part of a larger non-computing system.
• Class B covered WAP phones, 3G mobile phones, internet-enabled TV devices, and substantially similar devices capable of sending and receiving data over networks, with the Treasury having power to refine or extend this class by order.
• Class C covered software licences or rights to use software in connection with any Class A or Class B equipment.