CA23130 - PMA: FYA: ICT expenditure incurred by small enterprises

CAA01/S45

100% FYA is available on capital expenditure on information and communications technology (ICT) incurred by a small enterprise CA23170 in the period 1 April 2000 to 31 March 2004. When the legislation was introduced the scheme ran until 31 March 2003. It was extended until 31 March 2004 by FA03. The normal exclusions in CA23110 apply.

ICT expenditure is expenditure on computers and associated peripherals, software, and the latest generation of web-enabled mobile phones.

Computers and associated peripherals are:

• computers, whether large or small (the whole spectrum from mainframes, down to the small laptops and palmtop computers are included);
• peripheral devices intended to be connected to or incorporated in a computer. These include items such as monitors, keyboards, mice, printers, scanners, disc drives, CD ROM drives, DVD drives and memory add-ons;
• equipment, including cabling, which provides a data connection to another computer or to a data communications network;
• dedicated electrical systems for computers. These are electrical systems for the purposes only of supplying electricity to computers or peripheral devices (these are circuits that protect the equipment from voltage surges etc).

Software

CAA01/S71 ( CA22280) makes expenditure on computer software and rights over computer software qualifying expenditure for PMAs. 100% FYAs are available on expenditure on any software, or rights over software within Section 71 for use in any computer or peripheral device as listed above.

Mobile phones etc.

The equipment in this category is wireless application protocol (WAP) phones, 3rd generation universal mobile telecommunication system (UMTS) mobile phones and portable digital assistants (PDAs) capable of receiving and transmitting information from and to data networks including the Internet

Peripheral devices

Peripheral devices are anything designed and intended to be used by being connected to a computer, such as a monitor, keyboard, mouse, modem, scanner, or printer.

You may get a claim that an accessory that can be used either as a computer accessory or for some other purpose (a multi-purpose accessory) is a peripheral device. Treat a multi-purpose accessory as a peripheral device if it is intended to be used as a computer accessory. If it is bought for some other purpose with any use as a computer accessory incidental it does not.

Assets such as digital cameras/camcorders, electronic tills, and machinery used in a printing business and lathes do not qualify as peripheral devices even if they are connected to a computer. They are not bought to be used as a computer accessory. They may require significant amounts of computer support but it is the computer that is peripheral to these assets not the other way round.