Section 1126ZA | Attributable expenditure: special rules for data and cloud computing ^F1

(1)Expenditure on data licences or cloud computing services is not to be treated as attributable to relevant research and development if, in connection with the grant of a licence or the provision of a service, a relevant person obtains—^F1

(a)a right to sell data in respect of which the licence is granted or the service is provided (as the case may be);^F1

(b)a right to publish, share or otherwise communicate data in respect of which the licence is granted or the service is provided (as the case may be) to a third party, other than for the purposes of communications reasonably necessary for, or incidental to, the purposes of the relevant research and development.^F1

(2)Expenditure on data licences or cloud computing services is not to be treated as attributable to relevant research and development so far as it is attributable to a qualifying indirect activity.^F1

(3)In this section—^F1

“qualifying indirect activity” means an activity mentioned in paragraph 31 of the Guidelines on the Meaning of Research and Development for Tax Purposes issued on 7 March 2023 and as amended from time to time;

“relevant person” has the meaning given in section 1126A(10).