Corporation Tax Act 2009 section 1217DC

Terminal losses

Section 1217DC deals with how a video games development company can use a terminal loss when it ceases its separate trade in relation to a qualifying video game.

• When a video games development company stops its separate trade for a qualifying video game and has unrelieved losses, these are treated as terminal losses
• The company can elect to carry forward a terminal loss and set it against profits of another separate trade it carries on for a different qualifying video game
• Alternatively, the terminal loss can be surrendered to another video games development company within the same group, provided that company claims the loss
• Any deduction from profits made under this section does not count towards the general restriction on deductions from trading profits