Corporation Tax Act 2009 section 1217AD

"Core expenditure"

Section 1217AD defines what counts as "core expenditure" for a video game, and specifies which types of spending are excluded from that definition.

• Core expenditure covers the costs of designing, producing and testing a video game
• Spending on designing the initial concept for the video game (such as preparing the business case) is excluded from core expenditure
• Costs of debugging a completed video game are not treated as core expenditure
• Maintenance expenditure in connection with a video game is also excluded from core expenditure