Corporation Tax Act 2009 section 1217CK

No account to be taken if amount unpaid

Section 1217CK prevents unpaid costs from being included in video game development expenditure calculations where those costs remain outstanding beyond a specified deadline.

• When calculating the costs of a video game at the end of a period, any amounts still unpaid 4 months after the end of that period must be excluded
• This rule ensures that only genuinely settled expenditure counts towards the cost calculations for tax relief purposes
• The rule does not override section 1217BD, which separately determines the point at which costs are treated as having been incurred
• If a payment is eventually made after the 4-month deadline, it may be recognised in a later period under the normal timing rules