Corporation Tax Act 2009 section 1125

Software, data licences, cloud computing services or consumable items

Section 1125 defines what counts as expenditure on software, data licences, cloud computing services or consumable items for the purposes of the R&D tax relief rules in this Part of the Act.

• Qualifying expenditure covers amounts paid for computer software, data licences, cloud computing services, or consumable and transformable materials
• A data licence is defined as a licence to access and use a collection of digital data
• Cloud computing services include access to and maintenance of remote data storage, hardware facilities, operating systems and software platforms
• Consumable or transformable materials include water, fuel and power