Corporation Tax Act 2009 section 1179FP

Costs and income of separate trade

Section 1179FP defines which costs and income are attributed to a video game when calculating the profits of the separate trade for corporation tax purposes.

• Expenditure on development activities connected with the video game counts towards its costs
• Expenditure on activities aimed at exploiting the video game also counts towards its costs
• Receipts connected with the production or exploitation of the video game count as its income
• Income includes sales proceeds, royalties, merchandise rights payments, and profit share receipts