Corporation Tax Act 2009 section 1217D

Application of sections 1217DA and 1217DB

Section 1217D provides the key definitions that apply when determining how losses from a video game development trade are restricted during development and used in later periods.

• Sections 1217DA and 1217DB apply to a company that develops video games and relate to a specific video game
• The "completion period" is the accounting period in which the video game is completed or the company abandons its development
• "Loss relief" means any way of using a trading loss to reduce the tax liability of the company or any other person
• The "pre-completion period" is any accounting period before the completion period, and the "separate video game trade" is the company's trade relating to that specific video game