made by Part 8 of Schedule 18 to FA 1998 (company tax returns:
claims for group relief).

(8) “Qualifying video game” means a video game in relation to which
the conditions for video games tax relief are met (see 1217C(2)).

CHAPTER 5 5Provisional entitlement to relief

1217E Introduction

(1) In this Chapter—

• “the company” means the video games development company
  in relation to a video game,

• 10“the completion period” means the accounting period of the
  company—

  (a)

  in which the video game is completed, or

  (b)

  if the company does not complete the video game, in
  which it abandons video game development activities
  15in relation to it,

• “interim accounting period” means any earlier accounting
  period of the company during which video game
  development activities are carried on in relation to the video
  game,

• 20“interim certificate” and “final certificate” have the meaning
  given by section 1217CC,

• “the separate video game trade” means the company’s separate
  trade in relation to the video game (see section 1217B), and

• “special video games relief” means—

  (a)

  25video games tax relief, or

  (b)

  relief under section 1217DC (transfer of terminal
  losses from one video game to another).

(2) The company’s company tax return for the completion period must
state that the video game has been completed or that the company
30has abandoned video game development activities in relation to it
(as the case may be).

1217EA Certification as a British video game

(1) The company is not entitled to special video games relief for an
interim accounting period unless its company tax return for the
35period is accompanied by an interim certificate.

(2) If an interim certificate ceases to be in force (otherwise than on being
superseded by a final certificate) or is revoked, the company—

(a) is not entitled to special video games relief for any period for
which its entitlement depended on the certificate, and

(b) 40must amend accordingly its company tax return for any such
period.

(3) If the video game is completed by the company—

(a) its company tax return for the completion period must be
accompanied by a final certificate,

(b) if that requirement is met, the final certificate has effect for
the completion period and for any interim accounting period,
and

(c) if that requirement is not met, the company—

(i) 5is not entitled to special video games relief for any
period, and

(ii) must amend accordingly its company tax return for
any period for which such relief was claimed.

(4) If the company abandons video game development activities in
10relation to the video game—

(a) its company tax return for the completion period may be
accompanied by an interim certificate, and

(b) the abandonment of video game development activities does
not affect any entitlement to special video games relief in that
15or any previous accounting period.

(5) If a final certificate is revoked, the company—

(a) is not entitled to special video games relief for any period,
and

(b) must amend accordingly its company tax return for any
20period for which such relief was claimed.

1217EB The UK expenditure condition

(1) The company is not entitled to special video games relief for an
interim accounting period unless—

(a) its company tax return for the period states the amount of
25planned core expenditure on the video game that is UK
expenditure, and

(b) that amount is such as to indicate that the condition in section
1217CE (the UK expenditure condition) will be met on
completion of the video game.

30If those requirements are met, the company is provisionally treated
in relation to that period as if that condition was met.

(2) If such a statement is made but it subsequently appears that the
condition will not be met on completion of the video game, the
company—

(a) 35is not entitled to special video games relief for any period for
which its entitlement depended on such a statement, and

(b) must amend accordingly its company tax return for any such
period.

(3) When the video game is completed or the company abandons video
40game development activities in relation to it (as the case may be), the
company’s company tax return for the completion period must be
accompanied by a final statement of the amount of core expenditure
on the video game that is UK expenditure.

(4) If that statement shows that the condition in section 1217CE is not
45met, the company—

(a) is not entitled to special video games relief for any period,
and

(b) must amend accordingly its company tax return for any
period for which such relief was claimed.

1217EC Time limit for amendments and assessments

Any amendment or assessment necessary to give effect to the
5provisions of this Chapter may be made despite any limitation on the
time within which an amendment or assessment may normally be
made.”

Part 2 Commencement

2 (1) 10Any power conferred on the Secretary of State or the Treasury by virtue of
this Schedule to make regulations or an order comes into force on the day on
which this Act is passed.

(2) So far as not already brought into force by sub-paragraph (1), the
amendments made by this Schedule come into force in accordance with
15provision contained in an order made by the Treasury.

(3) An order under sub-paragraph (2)—

(a) may make different provision for different purposes;

(b) may make such adaptations of Part 15B of CTA 2009 as appear to be
necessary or expedient in consequence of other provisions of this Act
20not yet having come into force.

3 (1) The amendments made by this Schedule have effect in relation to accounting
periods beginning on or after 1 April 2013.

(2) Sub-paragraph (3) applies where a company has an accounting period
beginning before 1 April 2013 and ending on or after that date (“the
25straddling period”).

(3) For the purposes of Part 15B of CTA 2009—

(a) so much of the straddling period as falls before 1 April 2013, and so
much of that period as falls on or after that date, are treated as
separate accounting periods, and

(b) 30any amounts brought into account for the purposes of calculating for
corporation tax purposes the profits of any trade of the company for
the straddling period are apportioned to the two separate accounting
periods on such basis as is just and reasonable.

Section 35

SCHEDULE 17 35Television and video games tax relief: consequential amendments

ICTA

1 (1) Section 826 of ICTA (interest on tax overpaid) is amended as follows.

(2) In subsection (1), after paragraph (f) insert—

“(fa) a payment of television tax credit falls to be made to a
40company; or

(fb) a payment of video game tax credit falls to be made to a
company; or”.

(3) In subsection (3C), after “film tax credit” insert “, television tax credit or
video game tax credit”.

(4) 5In subsection (8A)(b)(ii), after “film tax credit” insert “or television tax credit
or video game tax credit”.

(5) In subsection (8BA), after “film tax credit” (in both places) insert “or
television tax credit or video game tax credit”.

FA 1998

2 10Schedule 18 to FA 1998 (company tax returns, assessments and related
matters) is amended as follows.

3 (1) Paragraph 10 (other claims and elections to be included in return) is
amended as follows.

(2) In sub-paragraph (4), for “film tax relief” substitute “tax relief under Part 15,
1515A or 15B of the Corporation Tax Act 2009”.

(3) After sub-paragraph (5) insert—

“(6) An election under section 1216AE(7) of the Corporation Tax Act
2009 (election not to be a television production company) can only
be made by being included in a company tax return (see section
201216AE(8)(a) of that Act).

(7) An election under section 1217AB(6) of the Corporation Tax Act
2009 (election not to be a video games development company) can
only be made by being included in a company tax return (see
section 1217AB(7)(a) of that Act).”

4 (1) 25Paragraph 52 (recovery of excessive overpayments etc) is amended as
follows.

(2) In sub-paragraph (2), after paragraph (bd) insert—

“(be) television tax credit under Part 15A of that Act,

(bf) video game tax credit under Part 15B of that Act,”.

(3) 30In sub-paragraph (5)—

(a) after paragraph (af) insert—

“(ag) an amount of television tax credit paid to a
company for an accounting period,

(ah) an amount of video game tax credit paid to a
35company for an accounting period,”;

(b) after “(ae)” insert “, (ag), (ah)”.

5 (1) Part 9D (claims for film tax relief) is amended as follows.

(2) In paragraph 83S (introduction), for “film tax relief” substitute “the
following reliefs—

“(a) 40film tax relief,

(b) television tax relief,

(c) video games tax relief.”

(3) The heading of that Part becomes “Claims for tax relief under Part 15,
15A or 15B of the Corporation Tax Act 2009”.

CAA 2001

6 In Schedule A1 to CAA 2001 (first-year tax credits), in paragraph 11(4), omit
5the “and” at the end of paragraph (b) and after paragraph (c) insert—

“(d) Chapter 3 of Part 15A of that Act (television tax credits),
and

(e) Chapter 3 of Part 15B of that Act (video game tax credits).”

FA 2007

7 10In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa)
(meaning of “corporation tax credit”), omit the “or” at the end of sub-
paragraph (iv) and after that sub-paragraph insert—

“(iva) a television tax credit under Chapter 3 of Part 15A
of that Act,

(ivb) 15a video game tax credit under Chapter 3 of Part 15B
of that Act, or”.

CTA 2009

8 In Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure
credits), after section 104B insert—

“104BA 20 Restriction on claiming other tax reliefs

(1) For provision prohibiting an R&D expenditure credit being given
under this Chapter and relief being given under Chapter 3 of Part 15
(film tax relief), see section 1195(3A).

(2) For provision prohibiting an R&D expenditure credit being given
25under this Chapter and relief being given under Chapter 3 of Part
15A (television tax relief), see section 1216C(4).

(3) For provision prohibiting an R&D expenditure credit being given
under this Chapter and relief being given under Chapter 3 of Part
15B (video games tax relief), see section 1217C(4).”

9 30In Part 8 of CTA 2009 (intangible fixed assets), in Chapter 10 (excluded
assets), after section 808 insert—

“808A Assets representing production expenditure on certain TV
programmes

(1) This Part does not apply to an intangible fixed asset held by a
35television production company so far as it represents production
expenditure on a television programme to which Chapter 2 of Part
15A (taxation of activities of television production company) applies.

(2) In this section—

(a) “television programme” has the same meaning as in Part 15A
40(see section 1216AA),

(b) “television production company” has the same meaning as in
that Part (see section 1216AE), and

(c) “production expenditure” has the same meaning as in that
Part (see section 1216AG(2)).

808B Assets representing core expenditure on video games

(1) This Part does not apply to an intangible fixed asset held by a video
5games development company so far as it represents core expenditure
on a video game to which Chapter 2 of Part 15B (taxation of activities
of video games development company) applies.

(2) In this section—

(a) “video game” has the same meaning as in Part 15B (see
10section 1217AA),

(b) “video games development company” has the same meaning
as in that Part (see section 1217AB), and

(c) “core expenditure” has the same meaning as in that Part (see
section 1217AD).”

10 15In Part 13 of CTA 2009 (additional relief for expenditure on research and
development), after section 1040 insert—

“1040ZA Restriction on claiming other tax reliefs

(1) For provision prohibiting relief being given under this Part and
under Chapter 3 of Part 15 (film tax relief), see section 1195(3A).

(2) 20For provision prohibiting relief being given under this Part and
under Chapter 3 of Part 15A (television tax relief), see section
1216C(4).

(3) For provision prohibiting relief being given under this Part and
under Chapter 3 of Part 15B (video games tax relief), see section
251217C(4).”

11 Part 15 of CTA 2009 (film tax relief) is amended as follows.

12 In section 1195 (availability and overview of film tax relief), after subsection
(3) insert—

“(3A) But film tax relief is not available in respect of any expenditure if—

(a) 30the company is entitled to an R&D expenditure credit under
Chapter 6A of Part 3 in respect of the expenditure, or

(b) the company has obtained relief under Part 13 (additional
relief for expenditure on research and development) in
respect of the expenditure.”

13 (1) 35Section 1206 (confidentiality of information) is amended as follows.

(2) In subsection (1), for the words from “Schedule 1” to the end substitute “any
of the provisions listed in subsection (1A)”.

(3) After subsection (1) insert—

“(1A) The provisions referred to in subsection (1) are—

(a) 40sections 1216CB to 1216CD (certification of relevant
programmes as British),

(b) sections 1217CB to 1217CD (certification of video games as
British), and

(c) Schedule 1 to the Films Act 1985 (certification of films as
British).”

(4) In subsection (2), for “UK Film Council” substitute “British Film Institute”.

(5) After that subsection insert—

“(2A) 5The Treasury may by order amend subsection (2)—

(a) so as to substitute for the person or body specified in that
subsection a different person or body, or

(b) in consequence of a change in the name of the person or body
so specified.”

(6) 10In subsection (3)—

(a) in paragraph (a), for the words from “Schedule 1” to the end
substitute “any of the provisions listed in subsection (1A)”;

(b) in paragraph (d), for “that Schedule or this Part” substitute “any of
Parts 15 to 15B of this Act or Schedule 1 to the Films Act 1985”.

14 (1) 15In section 1310 of CTA 2009 (orders and regulations), subsection (4) is
amended as follows.

(2) Omit the “or” at the end of paragraph (e) and after that paragraph insert—

“(ea) section 1216AF(3) (meaning of “television production
activities” etc),

(eb) 20section 1216AH(3) (meaning of “UK expenditure” etc),

(ec) section 1216CE(2) (UK expenditure),

(ed) section 1216CF(4) (additional deduction for qualifying
expenditure),

(ee) section 1216CG(3) (amount of additional deduction),

(ef) 25section 1217AC(2) (meaning of “video games development
activities” etc),

(eg) section 1217AE(3) (meaning of “UK expenditure” etc),

(eh) section 1217CE(2) (UK expenditure),

(ei) section 1217CF(4) (additional deduction for qualifying
30expenditure),

(ej) section 1217CG(3) (amount of additional deduction),”.

15 (1) Schedule 4 to CTA 2009 (index of defined expressions) is amended as
follows.

(2) At the appropriate place insert—

(3) At the appropriate place insert—

FA 2009

16 In Schedule 54A to FA 2009 (further provision as to late payment interest
and repayment interest), in paragraph 2(2), omit the “or” at the end of
paragraph (d) and after paragraph (e) insert—

“(f) 85a payment of television tax credit under Chapter 3 of Part
15 of CTA 2009 for an accounting period, or

(g) a payment of video game tax credit under Chapter 3 of Part
15B of CTA 2009 for an accounting period.”

CTA 2010

17 90Part 8A of CTA 2010 (profits arising from the exploitation of patents etc) is
amended as follows.

18 (1) Section 357CG (adjustments in calculating profits of trade) is amended as
follows.

(2) In subsection (3), omit the “and” at the end of paragraph (a) and after
95paragraph (b) insert—

“(c) the amount of any additional deduction for the accounting
period obtained by the company under Part 15A of CTA 2009
in respect of qualifying expenditure on a television
programme, and

(d) 100the amount of any additional deduction for the accounting
period obtained by the company under Part 15B of CTA 2009
in respect of qualifying expenditure on a video game.”

(3) After subsection (5) insert—

“(5A) In a case where—

(a) 105the company is—

(i) a television production company in relation to a
television programme, or

(ii) a video games development company in relation to a
video game, and

(b) 110there is a shortfall in qualifying expenditure in relation to the
separate programme trade or (as the case may be) the
separate video game trade for a relevant accounting period
(see section 357CHA),

the amount of qualifying expenditure brought into account in
115calculating the profits of the trade for that accounting period is to be
increased by the amount mentioned in section 357CHA(2).”

(4) In subsection (6)—

(a) for “subsection (5)” substitute “subsections (5) and (5A)”;

(b) before the definition of “R&D expenditure” insert—

• 120““qualifying expenditure”—

  (a)

  in relation to a company that is a television
  production company, has the same meaning
  as in Chapter 3 of Part 15A of CTA 2009, and

  (b)

  in relation to a company that is a video games
  125development company, has the same meaning
  as in Chapter 3 of Part 15B of that Act,”;

(c) omit the “and” before the definition of “research and development”;

(d) after that definition insert—

• ““the separate programme trade”, in relation to a
  television production company, has the same
  5meaning as in Chapter 2 of Part 15A of CTA 2009 (see
  section 1216B),

• “the separate video game trade”, in relation to a video
  games development company, has the same meaning
  as in Chapter 2 of Part 15B of CTA 2009 (see section
  101217B),

• “television production company” has the same meaning
  as in Part 15A of CTA 2009 (see section 1216AE), and

• “video games development company” has the same
  meaning as in Part 15B of CTA 2009 (see section
  151217AB).”

19 After section 357CH insert—

“357CHA Shortfall in qualifying expenditure

(1) There is a shortfall in qualifying expenditure in relation to the
separate programme trade of a television production company or (as
20the case may be) the separate video game trade of a video games
development company for a relevant accounting period if the actual
qualifying expenditure of the trade for the accounting period (as
adjusted under subsections (8) to (11)) is less than 75% of the average
amount of qualifying expenditure.

(2) 25The amount that is to be added to the actual qualifying expenditure
for the purposes of section 357CG(5A) is an amount equal to the
difference between—

(a) 75% of the average amount of qualifying expenditure, and

(b) the actual qualifying expenditure, as adjusted under
30subsections (8) to (11).

(3) In this section—

(a) the “actual qualifying expenditure” of a trade of a company
for an accounting period is the amount of qualifying
expenditure that (ignoring section 357CG(5A)) is brought
35into account in calculating the profits of the trade for the
accounting period, and

(b) the following terms have the meaning given by section
357CG(6)—

• “qualifying expenditure”,

• 40“relevant accounting period”,

• “the separate programme trade”,

• “the separate video game trade”,

• “television production company”,

• “video games development company”.

(4) 45The average amount of qualifying expenditure is—

(5) The relevant period is the shorter of—

(a) the period of 4 years ending immediately before the first
10relevant accounting period, and

(b) the period beginning with the day on which the company
begins to carry on the trade and ending immediately before
the first relevant accounting period.

(6) For a relevant accounting period of less than 12 months, the average
15amount of qualifying expenditure is proportionately reduced.

(7) Subsections (8) to (11) apply for the purposes of determining—

(a) whether there is a shortfall in qualifying expenditure for a
relevant accounting period, and

(b) if there is such a shortfall, the amount to be added by virtue
20of subsection (2).

(8) If the amount of the actual qualifying expenditure for a relevant
accounting period is greater than the average amount of qualifying
expenditure, the difference between the two amounts is to be added
to the actual qualifying expenditure for the next relevant accounting
25period.

(9) If—

(a) there is not a shortfall in qualifying expenditure for a relevant
accounting period, but

(b) in the absence of any additional amount, there would be a
30shortfall in qualifying expenditure for that accounting
period,

the remaining portion of the additional amount is to be added to the
actual qualifying expenditure for the next relevant accounting
period.

(10) 35For the purposes of this section—

• “additional amount”, in relation to a relevant accounting
  period, means any amount added to the actual qualifying
  expenditure for that accounting period by virtue of
  subsection (8), (9) or (11), and

• 40“the remaining portion” of an additional amount is so much of
  that amount as exceeds the difference between—

  (a)

  the actual qualifying expenditure for the relevant
  accounting period in the absence of the additional
  amount, and

  (b)

  4575% of the average amount of qualifying expenditure.

(11) If—

(a) there is not a shortfall in qualifying expenditure for a relevant
accounting period, and