|
| |
| |
| |
| Estimates for the purposes of this Chapter must be made as at the |
| |
balance sheet date for each period of account, on a just and |
| |
reasonable basis taking into consideration all relevant circumstances. |
| |
| 5 |
| |
| |
1217C | Availability and overview of video games tax relief |
| |
(1) | This Chapter applies for corporation tax purposes to a company that |
| |
is the video games development company in relation to a video |
| 10 |
| |
(2) | Relief under this Chapter (“video games tax relief”) is available to the |
| |
company if the conditions specified in the following sections are met |
| |
in relation to the video game— |
| |
(a) | section 1217CA (intended for supply), |
| 15 |
(b) | section 1217CB (British video game), and |
| |
(c) | section 1217CE (UK expenditure). |
| |
(3) | Video games tax relief is given by way of— |
| |
(a) | additional deductions (see sections 1217CF and 1217CG), and |
| |
(b) | video game tax credits (see sections 1217CH to 1217CJ). |
| 20 |
(4) | But video games tax relief is not available in respect of any |
| |
| |
(a) | the 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 |
| 25 |
relief for expenditure on research and development) in |
| |
respect of the expenditure. |
| |
(5) | Sections 1217CK to 1217CN contain provision about unpaid costs, |
| |
artificially inflated claims and confidentiality of information. |
| |
(6) | In this Chapter “the separate video game trade” means the |
| 30 |
company’s separate trade in relation to the video game (see section |
| |
| |
(7) | See Schedule 18 to FA 1998 (in particular, Part 9D) for information |
| |
about the procedure for making claims for video games tax relief. |
| |
| 35 |
1217CA | Intended for supply |
| |
(1) | The video game must be intended for supply to the general public. |
| |
(2) | Whether this condition is met is determined when video game |
| |
production activities begin, so that— |
| |
| |
| |
|
| |
| |
(a) | where a video game is originally intended for supply, this |
| |
condition continues to be met even if that ceases to be the |
| |
| |
(b) | where a video game is not originally intended for supply, this |
| |
condition is not met even if that becomes the intention. |
| 5 |
| |
1217CB | British video game |
| |
(1) | The video game must be certified by the Secretary of State as a British |
| |
| |
(2) | The Secretary of State, with the approval of the Treasury, may by |
| 10 |
regulations specify conditions which must be met by a video game |
| |
before it may be certified as a British video game. |
| |
| These conditions are known as the “cultural test”. |
| |
(3) | Regulations under subsection (2) may— |
| |
(a) | specify different conditions in relation to different |
| 15 |
descriptions of video game, |
| |
(b) | provide that specified descriptions of video game may not be |
| |
certified as a British video game, and |
| |
(c) | enable the Secretary of State to direct that any provision |
| |
made by virtue of paragraph (b) does not apply to a video |
| 20 |
game that meets specified conditions. |
| |
| “Specified” means specified in the regulations. |
| |
(4) | Regulations under subsection (2) are to be made by statutory |
| |
| |
(5) | A statutory instrument containing regulations under subsection (2) |
| 25 |
is subject to annulment in pursuance of a resolution of the House of |
| |
| |
(6) | Sections 1217CC and 1217CD contain further provision about |
| |
certification of video games as British video games, including |
| |
provision about applications for, and withdrawal of, certification. |
| 30 |
1217CC | Applications for certification |
| |
(1) | An application for certification of a video game as a British video |
| |
game is to be made to the Secretary of State by the video games |
| |
| |
(2) | The application may be for an interim or final certificate. |
| 35 |
(3) | An interim certificate is a certificate that— |
| |
(a) | is granted before the video game is completed, and |
| |
(b) | states that the video game, if completed in accordance with |
| |
the proposals set out in the application, will be a British video |
| |
| 40 |
(4) | A final certificate is a certificate that— |
| |
(a) | is granted after the video game is completed, and |
| |
(b) | states that the video game is a British video game. |
| |
| |
| |
|
| |
| |
(5) | The applicant must provide the Secretary of State with any |
| |
documents or information which the Secretary of State requires in |
| |
order to determine the application. |
| |
(6) | The Secretary of State may require information provided for the |
| |
purposes of the application to be accompanied by a statutory |
| 5 |
declaration, made by the person providing it, as to the truth of the |
| |
| |
(7) | The Secretary of State may by regulations make provision |
| |
supplementing this section, including— |
| |
(a) | provision about the form of applications, |
| 10 |
(b) | provision about the particulars and evidence necessary for |
| |
satisfying the Secretary of State that a video game meets the |
| |
| |
(c) | provision that any statutory declaration which is required by |
| |
subsection (6) to be made by any person may be made on the |
| 15 |
person’s behalf by such person as is specified in the |
| |
| |
(8) | Regulations under subsection (7) are to be made by statutory |
| |
| |
(9) | A statutory instrument containing regulations under subsection (7) |
| 20 |
is subject to annulment in pursuance of a resolution of the House of |
| |
| |
1217CD | Certification and withdrawal of certification |
| |
(1) | If the Secretary of State is satisfied that the requirements are met for |
| |
interim or final certification of a video game as a British video game, |
| 25 |
the Secretary of State must certify the video game accordingly. |
| |
(2) | If the Secretary of State is not satisfied that those requirements are |
| |
met, the Secretary of State must refuse the application. |
| |
(3) | An interim certificate— |
| |
(a) | may be given subject to conditions, and (unless the Secretary |
| 30 |
of State directs otherwise) is of no effect if the conditions are |
| |
| |
(b) | may be expressed to expire after a specified period, and |
| |
(unless the Secretary of State directs otherwise) ceases to have |
| |
effect at the end of that period. |
| 35 |
(4) | An interim certificate ceases to have effect when a final certificate is |
| |
| |
(5) | If it appears to the Secretary of State that a video game certified |
| |
under this Part ought not to have been certified, the Secretary of State |
| |
may revoke its certification. |
| 40 |
(6) | Unless the Secretary of State directs otherwise, a certificate that is |
| |
revoked is treated as never having had effect. |
| |
| |
| |
|
| |
| |
| |
| |
(1) | At least 25% of the core expenditure on the video game incurred by |
| |
the company must be UK expenditure. |
| |
(2) | The Treasury may by regulations amend the percentage specified in |
| 5 |
| |
| |
1217CF | Additional deduction for qualifying expenditure |
| |
(1) | If video games tax relief is available to the company, it may (on |
| |
making a claim) make an additional deduction in respect of |
| 10 |
qualifying expenditure on the video game. |
| |
(2) | The deduction is made in calculating the profit or loss of the separate |
| |
| |
(3) | In this Chapter “qualifying expenditure” means core expenditure on |
| |
the video game that falls to be taken into account under Chapter 2 in |
| 15 |
calculating the profit or loss of the separate video game trade for tax |
| |
| |
(4) | The Treasury may by regulations— |
| |
(a) | amend subsection (3), and |
| |
(b) | provide that expenditure of a specified description is or is not |
| 20 |
to be regarded as qualifying expenditure. |
| |
1217CG | Amount of additional deduction |
| |
(1) | For the first period of account during which the separate video game |
| |
trade is carried on, the amount of the additional deduction is—![equation: char[E]](missing.gif) |
| |
| 25 |
(a) | so much of the qualifying expenditure as is UK expenditure, |
| |
| |
(b) | if less, 80% of the total amount of qualifying expenditure. |
| |
(2) | For any period of account after the first, the amount of the additional |
| |
deduction is given by— |
| 30 |
| |
| |
(a) | so much of the qualifying expenditure incurred to |
| |
date as is UK expenditure, or |
| |
(b) | if less, 80% of the total amount of qualifying |
| 35 |
expenditure incurred to date, and |
| |
P is the total amount of the additional deductions given for |
| |
| |
(3) | The Treasury may by regulations amend this section. |
| |
| |
| |
|
