|
| |
| |
1216DB | 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 |
| 5 |
programme trade continues. |
| |
(2) | Subsection (3) applies if a loss made in the separate programme 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 television tax |
| 10 |
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 programme trade. |
| 15 |
(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 television |
| 20 |
tax relief (see subsection (6)). |
| |
(6) | The amount of a loss in any period that is attributable to television |
| |
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 |
| |
deduction under Chapter 3 in that or any earlier period. |
| 25 |
(7) | This section does not apply to a loss to the extent that it is carried |
| |
forward or surrendered under section 1216DC. |
| |
| |
(1) | This section applies if— |
| |
(a) | a company (“company A”) is the television production |
| 30 |
company in relation to a qualifying programme, |
| |
(b) | company A ceases to carry on its separate trade in relation to |
| |
that programme (“trade X”) (see section 1216B), and |
| |
(c) | if company A had not ceased to carry on trade X, it could |
| |
have carried forward an amount under section 45 of CTA |
| 35 |
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 television production company in relation to another |
| |
qualifying programme, and |
| 40 |
(b) | is carrying on its separate trade in relation to that programme |
| |
| |
| 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 |
| |
were a loss brought forward under section 45 of CTA 2010 to be set |
| 45 |
| |
| |
|
| |
| |
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 television |
| |
production company in relation to a qualifying programme, |
| 5 |
(b) | company B is carrying on its separate trade in relation to that |
| |
programme (“trade Z”), and |
| |
(c) | company B is in the same group as company A for the |
| |
purposes of Part 5 of CTA 2010 (group relief). |
| |
(5) | Company A may surrender the terminal loss (or a part of it) to |
| 10 |
| |
(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 |
| |
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 |
| 15 |
| |
(7) | The Treasury may, in relation to the surrender of a loss under |
| |
subsection (5) and the resulting claim under subsection (6), make |
| |
provision by regulations corresponding, subject to such adaptations |
| |
or other modifications as appear to them to be appropriate, to that |
| 20 |
made by Part 8 of Schedule 18 to FA 1998 (company tax returns: |
| |
claims for group relief). |
| |
(8) | “Qualifying programme” means a relevant programme in relation to |
| |
which the conditions for television tax relief are met (see 1216C(2)). |
| |
| 25 |
Provisional entitlement to relief |
| |
| |
| |
“the company” means the television production company in |
| |
relation to a relevant programme, |
| 30 |
“the completion period” means the accounting period of the |
| |
| |
(a) | in which the relevant programme is completed, or |
| |
(b) | if the company does not complete the relevant |
| |
programme, in which it abandons television |
| 35 |
production activities in relation to it, |
| |
“interim accounting period” means any earlier accounting |
| |
period of the company during which television production |
| |
activities are carried on in relation to the relevant |
| |
| 40 |
“interim certificate” and “final certificate” have the meaning |
| |
| |
“the separate programme trade” means the company’s separate |
| |
trade in relation to the relevant programme (see section |
| |
| 45 |
“special television relief” means— |
| |
| |
| |
|
| |
| |
(a) | television tax relief, or |
| |
(b) | relief under section 1216DC (transfer of terminal |
| |
losses from one relevant programme to another). |
| |
(2) | The company’s company tax return for the completion period must |
| |
state that the relevant programme has been completed or that the |
| 5 |
company has abandoned television production activities in relation |
| |
to it (as the case may be). |
| |
1216EA | Certification as a British programme |
| |
(1) | The company is not entitled to special television relief for an interim |
| |
accounting period unless its company tax return for the period is |
| 10 |
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 television relief for any period for |
| |
which its entitlement depended on the certificate, and |
| 15 |
(b) | must amend accordingly its company tax return for any such |
| |
| |
(3) | If the relevant programme is completed by the company— |
| |
(a) | its company tax return for the completion period must be |
| |
accompanied by a final certificate, |
| 20 |
(b) | if that requirement is met, the final certificate has effect for |
| |
the completion period and for any interim accounting period, |
| |
| |
(c) | if that requirement is not met, the company— |
| |
(i) | is not entitled to special television relief for any |
| 25 |
| |
(ii) | must amend accordingly its company tax return for |
| |
any period for which such relief was claimed. |
| |
(4) | If the company abandons television production activities in relation |
| |
to the relevant programme— |
| 30 |
(a) | its company tax return for the completion period may be |
| |
accompanied by an interim certificate, and |
| |
(b) | the abandonment of television production activities does not |
| |
affect any entitlement to special television relief in that or any |
| |
previous accounting period. |
| 35 |
(5) | If a final certificate is revoked, the company— |
| |
(a) | is not entitled to special television relief for any period, and |
| |
(b) | must amend accordingly its company tax return for any |
| |
period for which such relief was claimed. |
| |
1216EB | The UK expenditure condition |
| 40 |
(1) | The company is not entitled to special television relief for an interim |
| |
accounting period unless— |
| |
(a) | its company tax return for the period states the amount of |
| |
planned core expenditure on the relevant programme that is |
| |
| 45 |
| |
| |
|
| |
| |
(b) | that amount is such as to indicate that the condition in section |
| |
1216CE (the UK expenditure condition) will be met on |
| |
completion of the programme. |
| |
| If those requirements are met, the company is provisionally treated |
| |
in relation to that period as if that condition was met. |
| 5 |
(2) | If such a statement is made but it subsequently appears that the |
| |
condition will not be met on completion of the programme, the |
| |
| |
(a) | is not entitled to special television relief for any period for |
| |
which its entitlement depended on such a statement, and |
| 10 |
(b) | must amend accordingly its company tax return for any such |
| |
| |
(3) | When the relevant programme is completed or the company |
| |
abandons television production activities in relation to it (as the case |
| |
may be), the company’s company tax return for the completion |
| 15 |
period must be accompanied by a final statement of the amount of |
| |
core expenditure on the programme that is UK expenditure. |
| |
(4) | If that statement shows that the condition in section 1216CE is not |
| |
| |
(a) | is not entitled to special television relief for any period, and |
| 20 |
(b) | must amend accordingly its company tax return for any |
| |
period for which such relief was claimed. |
| |
1216EC | 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 |
| 25 |
time within which an amendment or assessment may normally be |
| |
| |
| |
| |
2 (1) | Any power conferred on the Secretary of State or the Treasury by virtue of |
| 30 |
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. |
| 35 |
(3) | An order under sub-paragraph (2)— |
| |
(a) | may make different provision for different purposes; |
| |
(b) | may make such adaptations of Part 15A of CTA 2009 as appear to be |
| |
necessary or expedient in consequence of other provisions of this Act |
| |
not yet having come into force. |
| 40 |
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 |
| |
| 45 |
| |
| |
|
| |
| |
(3) | For the purposes of Part 15A 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 |
| 5 |
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. |
| |
| |
| |
Tax relief for video games development |
| 10 |
| |
| |
1 | After Part 15A of CTA 2009 (inserted by Schedule 15 above) insert— |
| |
| |
| 15 |
| |
| |
| |
| |
(1) | This Part is about video games development. |
| 20 |
(2) | Sections 1217AA to 1217AF contain definitions and other provisions |
| |
about interpretation that apply for the purposes of this Part. |
| |
| |
(a) | section 1217AA, which contains provision about the meaning |
| |
| 25 |
(b) | section 1217AB, which explains how a company comes to be |
| |
treated as the video games development company in relation |
| |
| |
(3) | Chapter 2 is about the taxation of the activities of a video games |
| |
development company and includes— |
| 30 |
(a) | provision for the company’s activities in relation to its video |
| |
game to be treated as a separate trade, and |
| |
(b) | provision about the calculation of the profits and losses of |
| |
| |
(4) | Chapter 3 is about relief (called “video games tax relief”) which can |
| 35 |
be given to a video games development company— |
| |
(a) | by way of additional deductions to be made in calculating the |
| |
profits or losses of the company’s separate trade, or |
| |
| |
| |
|
| |
| |
(b) | by way of a payment (a “video game tax credit”) to be made |
| |
on the company’s surrender of losses from that trade. |
| |
(5) | Chapter 4 is about the relief which can be given for losses made by a |
| |
video games development company in its separate trade, including |
| |
provision for certain such losses to be transferred to other separate |
| 5 |
| |
| |
(a) | for relief under Chapters 3 and 4 to be given on a provisional |
| |
| |
(b) | for such relief to be withdrawn if it turns out that conditions |
| 10 |
that must be met for such relief to be given are not actually |
| |
| |
| |
| |
(1) | This section applies for the purposes of this Part. |
| 15 |
(2) | “Video game” does not include— |
| |
(a) | anything produced for advertising or promotional purposes, |
| |
| |
(b) | anything produced for the purposes of gambling (within the |
| |
meaning of the Gambling Act 2005). |
| 20 |
(3) | References to a video game include the game’s soundtrack. |
| |
(4) | A video game is completed when it is first in a form in which it can |
| |
reasonably be regarded as ready for copies of it to be made and made |
| |
available to the general public. |
| |
1217AB | Video games development company |
| 25 |
(1) | For the purposes of this Part “video games development company” |
| |
is to be read in accordance with this section. |
| |
(2) | There cannot be more than one video games development company |
| |
in relation to a video game. |
| |
(3) | A company is the video games development company in relation to |
| 30 |
a video game if the company (otherwise than in partnership)— |
| |
(a) | is responsible for designing, producing and testing the video |
| |
| |
(b) | is actively engaged in planning and decision-making during |
| |
the design, production and testing of the video game, and |
| 35 |
(c) | directly negotiates, contracts and pays for rights, goods and |
| |
services in relation to the video game. |
| |
(4) | If there is more than one company meeting the description in |
| |
subsection (3), the company that is most directly engaged in the |
| |
activities referred to in that subsection is the video games |
| 40 |
development company in relation to the video game. |
| |
(5) | If there is no company meeting the description in subsection (3), |
| |
there is no video games development company in relation to the |
| |
| |
| |
| |
|
| |
| |
(6) | A company may elect to be regarded as a company which does not |
| |
meet the description in subsection (3). |
| |
| |
(a) | must be made by the company by being included in its |
| |
company tax return for an accounting period (and may be |
| 5 |
included in the return originally made or by amendment), |
| |
| |
(b) | may be withdrawn by the company only by amending its |
| |
company tax return for that accounting period. |
| |
(8) | The election has effect in relation to video games which begin to be |
| 10 |
produced in that or any subsequent accounting period. |
| |
1217AC | “Video game development activities” etc |
| |
(1) | In this Part “video game development activities”, in relation to a |
| |
video game, means the activities involved in designing, producing |
| |
and testing the video game. |
| 15 |
(2) | The Treasury may by regulations— |
| |
(a) | amend subsection (1), |
| |
(b) | provide that specified activities are or are not to be regarded |
| |
as video game development activities or as video game |
| |
development activities of a particular description, and |
| 20 |
(c) | provide that, in relation to a specified description of video |
| |
game, references to video game development activities of a |
| |
particular description are to be read as references to such |
| |
activities as may be specified. |
| |
| “Specified” means specified in the regulations. |
| 25 |
1217AD | “Core expenditure” |
| |
(1) | In this Part “core expenditure”, in relation to a video game, means |
| |
expenditure on designing, producing and testing the video game. |
| |
(2) | But the following descriptions of expenditure are not to be regarded |
| |
as core expenditure for the purposes of this Part— |
| 30 |
(a) | any expenditure incurred in designing the initial concept for |
| |
| |
(b) | any expenditure incurred in debugging a completed video |
| |
game or carrying out any maintenance in connection with |
| |
| 35 |
1217AE | “UK expenditure” etc |
| |
(1) | In this Part “UK expenditure”, in relation to a video game, means |
| |
expenditure on goods or services that are used or consumed in the |
| |
| |
(2) | Any apportionment of expenditure as between UK expenditure and |
| 40 |
non-UK expenditure for the purposes of this Part is to be made on a |
| |
just and reasonable basis. |
| |
(3) | The Treasury may by regulations amend subsection (1). |
| |
| |
| |
|
