Finance Bill

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 16 — Tax relief for video games development
Part 1 — Amendments of CTA 2009
295

(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)
is not entitled to special video games relief for any
5
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
relation to the video game—
10
(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
or any previous accounting period.
15
(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
period for which such relief was claimed.
20
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
planned core expenditure on the video game that is UK
25
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.

If those requirements are met, the company is provisionally treated
30
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)
is not entitled to special video games relief for any period for
35
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
game development activities in relation to it (as the case may be), the
40
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
met, the company—
45
(a)
is not entitled to special video games relief for any period,
and

Finance Bill
Schedule 17 — Television and video games tax relief: consequential amendments
296

(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
provisions of this Chapter may be made despite any limitation on the
5
time within which an amendment or assessment may normally be
made.”
Part 2
Commencement
2     (1)
Any power conferred on the Secretary of State or the Treasury by virtue of
10
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
provision contained in an order made by the Treasury.
15
      (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
not yet having come into force.
20
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
straddling period”).
25
      (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)
any amounts brought into account for the purposes of calculating for
30
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.
Schedule 17
Section 35

Television and video games tax relief: consequential amendments
35
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
company; or
40

Finance Bill
Schedule 17 — Television and video games tax relief: consequential amendments
297

(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)
In subsection (8A)(b)(ii), after “film tax credit” insert “or television tax credit
5
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
Schedule 18 to FA 1998 (company tax returns, assessments and related
10
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,
15A or 15B of the Corporation Tax Act 2009”.
15
      (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
1216AE(8)(a) of that Act).
20
      (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)
Paragraph 52 (recovery of excessive overpayments etc) is amended as
25
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)
In sub-paragraph (5)—
30
(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
company for an accounting period,”;
35
(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)
film tax relief,
40
(b)
television tax relief,
(c)
video games tax relief.”

Finance Bill
Schedule 17 — Television and video games tax relief: consequential amendments
298

      (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
the “and” at the end of paragraph (b) and after paragraph (c) insert—
5
“(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
In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa)
10
(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)
a video game tax credit under Chapter 3 of Part 15B
15
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
Restriction on claiming other tax reliefs
20
(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
under this Chapter and relief being given under Chapter 3 of Part
25
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
In Part 8 of CTA 2009 (intangible fixed assets), in Chapter 10 (excluded
30
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
television production company so far as it represents production
35
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
(see section 1216AA),
40
(b)
“television production company” has the same meaning as in
that Part (see section 1216AE), and

Finance Bill
Schedule 17 — Television and video games tax relief: consequential amendments
299

(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
games development company so far as it represents core expenditure
5
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
section 1217AA),
10
(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
In Part 13 of CTA 2009 (additional relief for expenditure on research and
15
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)
For provision prohibiting relief being given under this Part and
20
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
1217C(4).”
25
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)
the company is entitled to an R&D expenditure credit under
30
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)
Section 1206 (confidentiality of information) is amended as follows.
35
      (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)
sections 1216CB to 1216CD (certification of relevant
40
programmes as British),
(b)
sections 1217CB to 1217CD (certification of video games as
British), and

Finance Bill
Schedule 17 — Television and video games tax relief: consequential amendments
300

(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)
The Treasury may by order amend subsection (2)—
5
(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)
In subsection (3)—
10
(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)
In section 1310 of CTA 2009 (orders and regulations), subsection (4) is
15
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)
section 1216AH(3) (meaning of “UK expenditure” etc),
20
(ec)
section 1216CE(2) (UK expenditure),
(ed)
section 1216CF(4) (additional deduction for qualifying
expenditure),
(ee)
section 1216CG(3) (amount of additional deduction),
(ef)
section 1217AC(2) (meaning of “video games development
25
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
expenditure),
30
(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—

“the company (in
section 1216E(1)”;

35

Chapter 5 of Part 15A)

“company tax return (in
section 1216AJ”;

Part 15A)

“the completion period
section 1216E(1)”;

(in Chapter 5 of Part 15A)

40

“co-producer (in Part
section 1216AI”;

15A)

Finance Bill
Schedule 17 — Television and video games tax relief: consequential amendments
301

“core expenditure (in
section 1216AG(3)”;

Part 15A)

“costs of the relevant
section 1216BC”;

programme (in Chapter 2

of Part 15A)

5

“final certificate (in
section 1216CC”;

Chapter 5 of Part 15A)

“income from the
section 1216BB”;

relevant programme (in

Chapter 2 of Part 15A)

10

“interim accounting
section 1216E(1)”;

period (in Chapter 5 of

Part 15A)

“interim certificate (in
section 1216CC”;

Chapter 5 of Part 15A)

15

“principal photography
section 1216AF(2)”;

(in Part 15A)

“production expenditure
section 1216AG(2)”;

(in Part 15A)

“qualifying co-
section 1216AI”;

20

production (in Part 15A)

“qualifying expenditure
section 1216CF(3)”;

(in Chapter 3 of Part 15A)

“relevant programme (in
section 1216AB”;

Part 15A)

25

“the separate programme
section 1216B(3)”;

trade (in Chapters 2, 3

and 5 of Part 15A)

“special television relief
section 1216E(1)”;

(in Chapter 5 of Part 15A)

30

“television production
section 1216AF”;

activities (in Part 15A)

“television production
section 1216AE”;

company (in Part 15A)

“television programme
section 1216AA”;

35

(in Part 15A)

“television tax relief (in
section 1216C(2)”;

Part 15A)

“UK expenditure (in Part
section 1216AH”.

15A)

40