188体育

CTA09/Ss1125 & 1126听

Expenditure which is not of a capital nature and is incurred on software employed directly in R&D is a category of qualifying expenditure for expenditure incurred on or after 1 April 2004. Software means computer software. The software must be used in activity that constitutes R&D for tax purposes, which includes 鈥榪ualifying indirect 补肠迟颈惫颈迟颈别蝉鈥�.听

Use other than directly in R&D听

Expenditure on software not employed directly in R&D is not qualifying expenditure.听

Thus, software used by the human resources department would be included but only to the extent that the activity which it was used for was undertaken for R&D purposes (see paragraphs 31(b) and ( c) of the DSIT Guidelines). But software used, for example, to train the HR staff would not.听

Further guidance on the indirect aspects of R&D is given in the DSIT Guidelines (CIRD81900 for the 2004 guidelines).听

Apportionments听

Where software is only partly employed in direct R&D an appropriate听apportionment of the expenditure should be made.听

How a suitable apportionment is to be achieved in practice depends on the specific facts of the R&D and the software.听

Wherever possible a pragmatic approach should be adopted - for example, an apportionment based on staff numbers may prove most suitable where a particular software product is used by R&D and non-R&D staff.听

If a company offers a reasonable apportionment basis HMRC do not envisage detailed enquiries being desirable to establish a slightly more accurate alternative.听

听