Corporation Tax Act 2009 section 903

Elections to exclude capital expenditure on computer software

Section 903 extends the right available under section 815 for companies to elect to exclude capital expenditure on computer software from the intangible fixed assets regime, specifically making this election available to insurance companies that carry on life assurance business.

• Insurance companies with life assurance business may elect to exclude capital expenditure on computer software from the intangible fixed assets regime
• This election right mirrors the general election available under section 815 of the same Act
• The effect of such an election is that capital expenditure on computer software is kept outside the Corporation Tax intangible fixed assets rules
• The provision originates from paragraph 83 of Schedule 29 to the Finance Act 2002, as subsequently amended by Finance Act 2012