Section 1217CH — Corporation Tax Act 2009: Video game tax credit claimable if company has surrenderable loss

Video game tax credit claimable if company has surrenderable loss 1217CH 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 surrenderable loss.

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)).

3 The company's available loss for an accounting period is given by— L + RUL where— 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 (see subsection (4)).

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 been—

a surrendered under section 1217CI(1), or b carried forward under section 45 or 45B 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 1217CG(1).

6 For any period of account after the first, the available qualifying expenditure is given by— E − S where— E is the amount that is E for that period for the purposes of section 1217CG(2), and S is the total amount previously surrendered under section 1217CI(1).

7 If a period of account of the separate video game trade does not coincide with an accounting period, any necessary apportionments are to be made by reference to the number of days in the periods concerned.