Capital Allowances Act 2001 section 71

Software and rights to software

Section 71 establishes that computer software and rights to use software are treated as plant for the purposes of claiming capital allowances.

• Computer software is automatically treated as plant for capital allowance purposes, regardless of whether it would otherwise qualify as plant.
• Capital expenditure on acquiring a right to use or deal with computer software qualifies for plant and machinery allowances.
• Both the software licence right and the underlying software are treated as plant provided for the qualifying activity.
• The person holding the software right is treated as owning the plant for as long as they remain entitled to that right.