Corporation Tax Act 2009 section 122

Expenditure on software, data licences, cloud computing services or consumable items

Section 122 provides transitional rules for how Part 13 of the Corporation Tax Act 2009 (which deals with R&D expenditure categories) applies to expenditure incurred before 1 April 2004, when the qualifying cost categories were narrower.

• For expenditure incurred before 1 April 2004, Part 13 applies with modifications to reflect the narrower scope of qualifying items at that time.
• Every reference to "software, data licences, cloud computing services or consumable items" is replaced with the older, narrower term "consumable stores".
• The detailed definitions in sections 1125 and 1126 are replaced by a single simplified provision defining consumable stores in line with normal accounting practice.
• Expenditure on consumable stores only qualifies if the stores are employed directly in relevant research and development.