Corporation Tax Act 2009 section 813

Computer software treated as part of cost of related hardware

Section 813 excludes certain computer software expenditure from the intangible fixed assets regime where that software is accounted for as part of the cost of the related hardware.

• Where computer software is treated in the accounts as part of the cost of the related hardware, the intangible fixed assets rules in Part 8 do not apply to it
• This exclusion applies because accounting standards do not treat such software as a separate intangible asset
• The exclusion does not extend to royalties — any royalty payments connected with such software remain within the scope of Part 8
• The exclusion applies only to the extent the intangible fixed asset represents the computer software expenditure bundled with hardware