Corporation Tax Act 2009 section 1217CH

Video game tax credit claimable if company has surrenderable losses

Section 1217CH establishes when a video games development company may claim a video games tax credit and how the surrenderable loss and available qualifying expenditure are calculated for that purpose.

• A video games development company may claim a video games tax credit for any accounting period in which it has a surrenderable loss, which is the lower of its available loss and its available qualifying expenditure
• The available loss for a period is the company's trading loss for that period plus any relevant unused loss from the previous period — that is, any prior loss not already surrendered for tax credit or carried forward under normal loss relief rules
• Available qualifying expenditure in the first period of account equals the qualifying expenditure determined under section 1217CG(1); for later periods it is that amount reduced by the total of any amounts already surrendered for video games tax credit in earlier periods
• Where the separate video game trade's period of account does not align with a corporation tax accounting period, figures must be apportioned on a time basis according to the number of days in each period