Corporation Tax Act 2009 section 1217CJ

Payment in respect of video game tax credit

Section 1217CJ sets out how video game tax credits are paid to companies, including the circumstances under which HMRC may withhold or offset payments.

• Where a company claims a video game tax credit it is entitled to, HMRC must pay the credit to the company, but this amount (or any related interest) can be set against any corporation tax the company owes.
• If HMRC is enquiring into the company's tax return, it is not obliged to make any payment, although it may choose to make provisional payments at its discretion.
• HMRC is not required to pay the credit if the company has outstanding amounts owed for PAYE, visiting performers, or Class 1 National Insurance contributions.
• Any payment of a video game tax credit received by the company is not treated as income for any tax purpose.