Software and rights to software
(1) For the purposes of this Part computer software is treated as plant (whether or not it would constitute plant apart from this section).
(2) If a person carrying on a qualifying activity incurs capital expenditure in acquiring, for the purposes of the qualifying activity, a right to use or otherwise deal with computer software, this Part applies as if—
(a) the right and the software to which it relates were plant,
(b) the plant were provided for the purposes of the qualifying activity, and
(c) so long as the person is entitled to the right, the person owned the plant as a result of incurring the capital expenditure.
Disposal values
(1) This section applies if a person—
(a) has incurred qualifying expenditure on the provision of plant consisting of computer software or the right to use or otherwise deal with computer software, and
(b) grants to another a right to use or otherwise deal with the whole or part of the computer software in circumstances in which the consideration for the grant—
(i) consists of a capital sum, or
(ii) would consist of a capital sum if the consideration were in money.
(2) The person is required to bring a disposal value into account unless—
(a) while the person owned the computer software or the right to use or otherwise deal with the computer software, and
(b) before the grant of the right referred to in subsection (1)(b),
there has been a disposal event falling within section 61(1)(e) (use for purposes other than those of the qualifying activity) or 61(1)(f) (permanent discontinuance of the qualifying activity).
(3) The disposal value to be brought into account under this section depends on the circumstances of the grant of the right, as shown in the Table—
Disposal values: grant of software right
(4) The amounts referred to in column 2 of the Table are those received by the person required to bring the disposal value into account.
(5) The condition referred to in item 2 of the Table is met by the grantee if—
(a) the grantee’s expenditure on the acquisition of the plant cannot be qualifying expenditure under this Part or Part 6 (research and development allowances), or
(b) the grantee is a dual resident investing company which is connected with the grantor.
Limit on disposal values
(1) This section applies if a person is required to bring into account a disposal value in respect of—
(a) computer software, or
(b) the right to use or otherwise deal with computer software.
(2) For the purpose only of—
(a) determining whether the limit on the disposal value under section 62 is exceeded, and
(b) reducing the amount of that disposal value so that the limit is not exceeded,
the disposal value is to be taken to be increased by the amount given in subsection (3).
(3) The amount is the total of any disposal values which, in respect of that person and that plant, fall or have fallen to be brought into account under section 72.
