Section 815 | Election to exclude capital expenditure on software

(1)If a company so elects in respect of capital expenditure by the company on computer software, this section applies to an intangible fixed asset held by the company so far as it represents the expenditure.

(2)Chapter 2 (credits in respect of intangible fixed assets) does not apply to the asset, except for—

(a)section 721 (receipts recognised as they accrue), and

(b)section 722 (receipts in respect of royalties so far as not dealt with under section 721).

(3)Chapter 3 (debits in respect of intangible fixed assets) does not apply to the asset, except for section 732 (debit on reversal of previous accounting gain) so far as that section relates to credits previously brought into account under section 721 or 722.

(4)Chapter 4 (realisation of intangible fixed assets) applies as if the cost of the asset did not include any expenditure in respect of which an election under this section has been made.

(5)A credit is required to be brought into account under this Part in respect of the asset only so far as the receipts to which the credit relates are not taken into account in calculating disposal values under section 72 of CAA 2001.

(6)The references in this section and section 816—

(a)to capital expenditure, and

(b)to the time when such expenditure is incurred,

have the same meaning as if this section were in CAA 2001.

(7)Section 816 makes further provision about elections under this section.

(8)Repealed^F1