|
| |
|
| |
1217CH | Video game tax credit claimable if company has surrenderable loss |
| |
(1) | If video games tax relief is available to the company, it may claim a |
| |
video game tax credit for an accounting period in which it has a |
| |
| 5 |
(2) | The company’s surrenderable loss in an accounting period is— |
| |
(a) | the company’s available loss for the period in the separate |
| |
video game trade (see subsection (3)), or |
| |
(b) | if less, the available qualifying expenditure for the period (see |
| |
subsections (5) and (6)). |
| 10 |
(3) | The company’s available loss for an accounting period is given by— |
| |
| |
L is the amount of the company’s loss for the period in the |
| |
separate video game trade, and |
| |
RUL is the amount of any relevant unused loss of the company |
| 15 |
| |
(4) | The “relevant unused loss” of a company is so much of any available |
| |
loss of the company for the previous accounting period as has not |
| |
| |
(a) | surrendered under section 1217CI(1), or |
| 20 |
(b) | carried forward under section 45 of CTA 2010 and set against |
| |
profits of the separate video game trade. |
| |
(5) | For the first period of account during which the separate video game |
| |
trade is carried on, the available qualifying expenditure is the |
| |
amount that is E for that period for the purposes of section |
| 25 |
| |
(6) | For any period of account after the first, the available qualifying |
| |
expenditure is given by— |
| |
| |
E is the amount that is E for that period for the purposes of |
| 30 |
| |
S is the total amount previously surrendered under section |
| |
| |
(7) | If a period of account of the separate video game trade does not |
| |
coincide with an accounting period, any necessary apportionments |
| 35 |
are to be made by reference to the number of days in the periods |
| |
| |
1217CI | Surrendering of loss and amount of video game tax credit |
| |
(1) | The company may surrender the whole or part of its surrenderable |
| |
loss in an accounting period. |
| 40 |
(2) | If the company surrenders the whole or part of that loss, the amount |
| |
of the video game tax credit to which it is entitled for the accounting |
| |
period is 25% of the amount of the loss surrendered. |
| |
|
| |
|
| |
|
(3) | The company’s available loss for the accounting period is reduced by |
| |
| |
1217CJ | Payment in respect of video game tax credit |
| |
| |
(a) | is entitled to a video game tax credit for a period, and |
| 5 |
| |
| the Commissioners for Her Majesty’s Revenue and Customs (“the |
| |
Commissioners”) must pay to the company the amount of the credit. |
| |
(2) | An amount payable in respect of— |
| |
(a) | a video game tax credit, or |
| 10 |
(b) | interest on a video game tax credit under section 826 of ICTA, |
| |
| may be applied in discharging any liability of the company to pay |
| |
| |
| To the extent that it is so applied the Commissioners’ liability under |
| |
subsection (1) is discharged. |
| 15 |
(3) | If the company’s company tax return for the accounting period is |
| |
enquired into by the Commissioners, no payment in respect of a |
| |
video game tax credit for that period need be made before the |
| |
Commissioners’ enquiries are completed (see paragraph 32 of |
| |
| 20 |
| In those circumstances the Commissioners may make a payment on |
| |
a provisional basis of such amount as they consider appropriate. |
| |
(4) | No payment need be made in respect of a video game tax credit for |
| |
an accounting period before the company has paid to the |
| |
Commissioners any amount that it is required to pay for payment |
| 25 |
periods ending in that accounting period— |
| |
(a) | under PAYE regulations, |
| |
(b) | under section 966 of ITA 2007 (visiting performers), or |
| |
(c) | in respect of Class 1 national insurance contributions under |
| |
Part 1 of the Social Security Contributions and Benefits Act |
| 30 |
1992 or Part 1 of the Social Security Contributions and |
| |
Benefits (Northern Ireland) Act 1992. |
| |
(5) | A payment in respect of a video game tax credit is not income of the |
| |
company for any tax purpose. |
| |
| 35 |
1217CK | No account to be taken of amount if unpaid |
| |
(1) | In determining for the purposes of this Chapter the amount of costs |
| |
incurred on a video game at the end of a period of account, ignore |
| |
any amount that has not been paid 4 months after the end of that |
| |
| 40 |
(2) | This is without prejudice to the operation of section 1217BD (when |
| |
costs are taken to be incurred). |
| |
|
| |
|
| |
|
1217CL | Artificially inflated claims for additional deduction or tax credit |
| |
(1) | So far as a transaction is attributable to arrangements entered into |
| |
wholly or mainly for a disqualifying purpose, it is to be ignored in |
| |
determining for any period— |
| |
(a) | any additional deduction which a company may make under |
| 5 |
| |
(b) | any video game tax credit to be given to a company. |
| |
(2) | Arrangements are entered into wholly or mainly for a disqualifying |
| |
purpose if their main object, or one of their main objects, is to enable |
| |
| 10 |
(a) | an additional deduction under this Chapter to which it |
| |
would not otherwise be entitled or of a greater amount than |
| |
that to which it would otherwise be entitled, or |
| |
(b) | a video game tax credit to which it would not otherwise be |
| |
entitled or of a greater amount than that to which it would |
| 15 |
| |
(3) | “Arrangements” includes any scheme, agreement or understanding, |
| |
whether or not legally enforceable. |
| |
1217CM | Confidentiality of information |
| |
(1) | Section 18(1) of the Commissioners for Revenue and Customs Act |
| 20 |
2005 (restriction on disclosure by Revenue and Customs officials) |
| |
does not prevent disclosure to the Secretary of State for the purposes |
| |
of the Secretary of State’s functions under any of the provisions listed |
| |
| |
(2) | The provisions referred to in subsection (1) are— |
| 25 |
(a) | sections 1216CB to 1216CD (certification of relevant |
| |
| |
(b) | sections 1217CB to 1217CD (certification of video games as |
| |
| |
(c) | Schedule 1 to the Films Act 1985 (certification of films as |
| 30 |
| |
(3) | Information so disclosed may be disclosed to the British Film |
| |
| |
(4) | The Treasury may by order amend subsection (3)— |
| |
(a) | so as to substitute for the person or body specified in that |
| 35 |
subsection a different person or body, or |
| |
(b) | in consequence of a change in the name of the person or body |
| |
| |
(5) | A person to whom information is disclosed under subsection (1) or |
| |
(3) may not otherwise disclose it except— |
| 40 |
(a) | for the purposes of the Secretary of State’s functions under |
| |
any of the provisions listed in subsection (2), |
| |
(b) | if the disclosure is authorised by an enactment, |
| |
(c) | in pursuance of an order of a court, |
| |
(d) | for the purposes of a criminal investigation or legal |
| 45 |
proceedings (whether civil or criminal) connected with the |
| |
|
| |
|
| |
|
operation of any of Parts 15 to 15B of this Act or Schedule 1 to |
| |
| |
(e) | with the consent of the Commissioners for Her Majesty’s |
| |
| |
(f) | with the consent of each person to whom the information |
| 5 |
| |
1217CN | Wrongful disclosure |
| |
(1) | A person (“X”) commits an offence if— |
| |
(a) | X discloses revenue and customs information relating to a |
| |
person (as defined in section 19(2) of the Commissioners for |
| 10 |
Revenue and Customs Act 2005), |
| |
(b) | the identity of the person to whom the information relates is |
| |
specified in the disclosure or can be deduced from it, and |
| |
(c) | the disclosure contravenes section 1217CM(5). |
| |
(2) | If a person (“Y”) is charged with an offence under subsection (1), it is |
| 15 |
a defence for Y to prove that Y reasonably believed— |
| |
(a) | that the disclosure was lawful, or |
| |
(b) | that the information had already and lawfully been made |
| |
| |
(3) | A person guilty of an offence under subsection (1) is liable— |
| 20 |
(a) | on conviction on indictment, to imprisonment for a term not |
| |
exceeding two years or a fine or both, or |
| |
(b) | on summary conviction, to imprisonment for a term not |
| |
exceeding 12 months or a fine not exceeding the statutory |
| |
| 25 |
(4) | A prosecution for an offence under subsection (1) may be brought in |
| |
| |
(a) | by the Director of Revenue and Customs Prosecutions, or |
| |
(b) | with the consent of the Director of Public Prosecutions. |
| |
(5) | A prosecution for an offence under subsection (1) may be brought in |
| 30 |
| |
(a) | by the Commissioners for Her Majesty’s Revenue and |
| |
| |
(b) | with the consent of the Director of Public Prosecutions for |
| |
| 35 |
(6) | In the application of this section— |
| |
(a) | in England and Wales, in relation to an offence committed |
| |
before the commencement of section 282 of the Criminal |
| |
| |
| 40 |
| the reference in subsection (3)(b) to 12 months is to be read as a |
| |
| |
|
| |
|
| |
|
| |
| |
1217D | Application of sections 1217DA and 1217DB |
| |
(1) | Sections 1217DA and 1217DB apply to a company that is the video |
| |
games development company in relation to a video game. |
| 5 |
| |
“the completion period” means the accounting period of the |
| |
| |
(a) | in which the video game is completed, or |
| |
(b) | if the company does not complete the video game, in |
| 10 |
which it abandons video game development activities |
| |
in relation to the video game, |
| |
“loss relief” includes any means by which a loss might be used |
| |
to reduce the amount in respect of which the company, or any |
| |
other person, is chargeable to tax, |
| 15 |
“pre-completion period” means an accounting period of the |
| |
company before the completion period, and |
| |
“the separate video game trade” means the company’s separate |
| |
trade in relation to the video game (see section 1217B). |
| |
1217DA | Restriction on use of losses while video game in development |
| 20 |
(1) | This section applies if in a pre-completion period a loss is made in the |
| |
separate video game trade. |
| |
(2) | The loss is not available for loss relief except to the extent that it may |
| |
be carried forward under section 45 of CTA 2010 to be set against |
| |
profits of the separate video game trade in a subsequent period. |
| 25 |
1217DB | Use of losses in later periods |
| |
(1) | This section applies to the following accounting periods of the |
| |
company (“relevant later periods”)— |
| |
(a) | the completion period, and |
| |
(b) | any subsequent accounting period during which the separate |
| 30 |
video game trade continues. |
| |
(2) | Subsection (3) applies if a loss made in the separate video game trade |
| |
is carried forward under section 45 of CTA 2010 from a pre- |
| |
completion period to a relevant later period. |
| |
(3) | So much (if any) of the loss as is not attributable to video games tax |
| 35 |
relief (see subsection (6)) may be treated for the purposes of loss |
| |
relief as if it were a loss made in the period to which it is carried |
| |
| |
(4) | Subsection (5) applies if in a relevant later period a loss is made in the |
| |
separate video game trade. |
| 40 |
(5) | The amount of the loss that may be— |
| |
(a) | deducted from total profits of the same or an earlier period |
| |
under section 37 of CTA 2010, or |
| |
(b) | surrendered as group relief under Part 5 of that Act, |
| |
|
| |
|
| |
|
| is restricted to the amount (if any) that is not attributable to video |
| |
games tax relief (see subsection (6)). |
| |
(6) | The amount of a loss in any period that is attributable to video games |
| |
tax relief is calculated by deducting from the total amount of the loss |
| |
the amount there would have been if there had been no additional |
| 5 |
deduction under Chapter 3 in that or any earlier period. |
| |
(7) | This section does not apply to a loss to the extent that it is carried |
| |
forward or surrendered under section 1217DC. |
| |
| |
(1) | This section applies if— |
| 10 |
(a) | a company (“company A”) is the video games development |
| |
company in relation to a qualifying video game, |
| |
(b) | company A ceases to carry on its separate trade in relation to |
| |
that video game (“trade X”) (see section 1217B), and |
| |
(c) | if company A had not ceased to carry on trade X, it could |
| 15 |
have carried forward an amount under section 45 of CTA |
| |
2010 to be set against profits of trade X in a later period (“the |
| |
| |
(2) | If on cessation of trade X company A— |
| |
(a) | is the video games development company in relation to |
| 20 |
another qualifying video game, and |
| |
(b) | is carrying on its separate trade in relation to that video game |
| |
| |
| it may (on making a claim) make an election under subsection (3). |
| |
(3) | The election is to have the terminal loss (or a part of it) treated as if it |
| 25 |
were a loss brought forward under section 45 of CTA 2010 to be set |
| |
against the profits of trade Y in the first accounting period beginning |
| |
after the cessation and so on. |
| |
(4) | Subsection (5) applies if on cessation of trade X— |
| |
(a) | there is another company (“company B”) that is the video |
| 30 |
games development company in relation to a qualifying |
| |
| |
(b) | company B is carrying on its separate trade in relation to that |
| |
video game (“trade Z”), and |
| |
(c) | company B is in the same group as company A for the |
| 35 |
purposes of Part 5 of CTA 2010 (group relief). |
| |
(5) | Company A may surrender the terminal loss (or a part of it) to |
| |
| |
(6) | On the making of a claim by company B the amount surrendered is |
| |
treated as if it were a loss brought forward by company B under |
| 40 |
section 45 of CTA 2010 to be set against the profits of trade Z of the |
| |
first accounting period of that company beginning after the cessation |
| |
| |
(7) | The Treasury may, in relation to the surrender of a loss under |
| |
subsection (5) and the resulting claim under subsection (6), make |
| 45 |
provision by regulations corresponding, subject to such adaptations |
| |
or other modifications as appear to them to be appropriate, to that |
| |
|
| |
|
| |
|
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)). |
| |
| 5 |
Provisional entitlement to relief |
| |
| |
| |
“the company” means the video games development company |
| |
in relation to a video game, |
| 10 |
“the completion period” means the accounting period of the |
| |
| |
(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 |
| 15 |
| |
“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 |
| |
| 20 |
“interim certificate” and “final certificate” have the meaning |
| |
| |
“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— |
| 25 |
(a) | video 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 |
| 30 |
has abandoned video game development activities in relation to it |
| |
| |
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 |
| 35 |
period 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 |
| 40 |
(b) | must amend accordingly its company tax return for any such |
| |
| |
(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, |
| 45 |
|
| |
|