Textual Amendments
F1Pt. 15B inserted (for specified purposes and with effect in accordance with Sch. 17 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 17 paras. 1, 2
(1)This Part is about video games development.
(2)Sections 1217AA to 1217AF contain definitions and other provisions about interpretation that apply for the purposes of this Part. See, in particular—
(a)section 1217AA, which contains provision about the meaning of “video game”, and
(b)section 1217AB, which explains how a company comes to be treated as the video games development company in relation to a video game.
(3)Chapter 2 is about the taxation of the activities of a video games development company and includes—
(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 that trade.
(4)Chapter 3 is about relief (called “video games tax relief”) which can 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 trades.
(6)Chapter 5 provides—
(a)for relief under Chapters 3 and 4 to be given on a provisional basis, and
(b)for such relief to be withdrawn if it turns out that conditions that must be met for such relief to be given are not actually met.
(1)This section applies for the purposes of this Part.
(2)“Video game” does not include—
(a)anything produced for advertising or promotional purposes, or
(b)anything produced for the purposes of gambling (within the meaning of the Gambling Act 2005).
(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.
(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 a video game if the company (otherwise than in partnership)—
(a)is responsible for designing, producing and testing the video game,
(b)is actively engaged in planning and decision-making during the design, production and testing of the video game, and
(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 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 video game.
(6)A company may elect to be regarded as a company which does not meet the description in subsection (3).
(7)The election—
(a)must be made by the company by being included in its company tax return for an accounting period (and may be included in the return originally made or by amendment), and
(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 produced in that or any subsequent accounting period.
(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.
(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
(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.
(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—
(a)any expenditure incurred in designing the initial concept for a video game;
(b)any expenditure incurred in debugging a completed video game or carrying out any maintenance in connection with such a video game.
(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 United Kingdom.
(2)Any apportionment of expenditure as between UK expenditure and 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).
In this Part “company tax return” has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1)).]