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Computer software and capital allowances

  • 27-03-2010 2:29pm
    #1
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭


    Hi

    Im trying to find out if anyone knows for sure what the situation is regarding expenditure on computer software and whether it is allowable as either a revenue expense or if it is required to be capitalised and capital allowances given at 12.5%.

    So if you spend say €500 on a copy of MS Office for example should it be capital and w/o over 8 years or just a revenue expense.

    Kind Regards


    Dbran


Comments

  • #2
    DoMyBooks
    Registered Users, Registered Users 2 Posts: 355 ✭✭DoMyBooks


    I've never seen this documented in Ireland but in the UK the rule of thumb is if software has a useful life of less than 2 years you can expense it.

    http://www.hmrc.gov.uk/MANUALS/bimmanual/BIM35810.htm


  • #3
    Legend100
    Registered Users, Registered Users 2 Posts: 736 ✭✭✭Legend100


    it should be written off over 8 years for tax purposes as it is specifically laid down as plant and machinery under S291 TCA 1997. If it has been expensed in the accounts, it should be added back and written off over the 8 years through capital allownaces.


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