Taxes Consolidation Act, 1997 (Number 39 of 1997)
291 Computer software.
[ITA67 s241A(1) and (2); FA94 s24(a)]
(1) [1]>Where a person carrying on a trade incurs<[1][1]>Subject to subsection (3), where a person carrying on a trade has incurred<[1] capital expenditure in acquiring for the purposes of the trade a right to use or otherwise deal with computer software, then, for the purposes of this Chapter and Chapter 4 of this Part—
(a) the right and the software to which the right relates shall be treated as machinery or plant,
(b) such machinery or plant shall be treated as having been provided for the purposes of the trade, and
(c) for so long as the person is entitled to the right, that machinery or plant shall be treated as belonging to that person.
(2) [2]>In any case where<[2][2]>Subject to subsection (3), in any case where<[2]—
(a) a person carrying on a trade [3]>incurs<[3][3]>has incurred<[3] capital expenditure on the provision of computer software for the purposes of the trade, and
(b) in consequence of the person [4]>incurring<[4][4]>having incurred<[4] that expenditure, the computer software belongs to that person but does not constitute machinery or plant,
then, for the purposes of this Chapter and Chapter 4 of this Part, the computer software shall be treated as machinery or plant.
[5]>
(3) Subject to subsection (4), where the person is a company, this section shall operate as if computer software or a right to use or otherwise deal with computer software were construed as being any such software or any such right—
(a) which is provided for computer systems or processes or computer operated machinery or equipment for use in the operation of the trade carried on by the company, and
(b) (i) the provision of which does not limit or restrict the person from whom the company acquired the software or the right in—
(I) the use of that software or exercise of that right, or
(II) the provision of that software or granting of that right to other persons,
or
(ii) which is not provided for activities of managing, developing or exploiting that software or that right for the purposes of receiving a royalty or other sum in respect of the use of that software or the exercise of that right by other persons.
(4) (a) Subject to paragraph (b), where a company elects in writing, subsection (3) shall not apply to expenditure, specified in the election, incurred by it after 4 February 2010 and before 4 February 2012 on computer software or on a right to use or otherwise deal with computer software.
(b) An election under paragraph (a) shall be made in the return required to be made under section 951 for the accounting period of the company in which the expenditure is incurred and shall not be made later than 12 months from the end of the accounting period in which the capital expenditure, giving rise to the claim, is incurred.
<[5]
[1]
Substituted by FA10 s43(1)(b)(i). Applies to expenditure incurred by a company after 4 February 2010.
[2]
Substituted by FA10 s43(1)(b)(ii)(I). Applies to expenditure incurred by a company after 4 February 2010.
[3]
Substituted by FA10 s43(1)(b)(ii)(II). Applies to expenditure incurred by a company after 4 February 2010.
[4]
Substituted by FA10 s43(1)(b)(ii)(III). Applies to expenditure incurred by a company after 4 February 2010.
[5]
Inserted by FA10 s43(1)(c). Applies to expenditure incurred by a company after 4 February 2010.