Corporation Tax Act 2009 section 1217CG

Amount of additional deduction

Section 1217CG sets out how to calculate the additional deduction available to a company carrying on a separate video game trade, both for the first period and for subsequent periods of account.

• In the first period of the video game trade, the additional deduction equals E, which is the lower of qualifying UK expenditure or 80% of total qualifying expenditure.
• In subsequent periods, the additional deduction is E minus P, where E is recalculated on a cumulative basis and P is the total of all additional deductions already given in earlier periods.
• The cumulative calculation of E uses the same comparison: the lower of total qualifying UK expenditure to date or 80% of total qualifying expenditure to date.
• HM Treasury has the power to amend this section by statutory instrument.