Corporation Tax Act 2009 section 1217CI

Surrendering of loss and amount of video game tax credit

Section 1217CI allows a video game development company to surrender its trading loss in exchange for a payable video game tax credit, and sets out the rate of that credit.

• A company may surrender all or part of its surrenderable loss for an accounting period
• The video game tax credit is calculated at 25% of the amount of loss surrendered
• Where only part of the loss is surrendered, the company's remaining available loss is reduced by the surrendered amount
• The surrender is a voluntary choice made by the company, giving flexibility over how much loss to convert into a payable credit