Section 1217EB — Corporation Tax Act 2009: The European expenditure condition

The European expenditure condition 1217EB 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 European expenditure , and b that amount is such as to indicate that the condition in section 1217CE (the European expenditure condition) will be met on completion of the video game. If those requirements are met, the company is provisionally treated 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 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 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 European expenditure .

4 If that statement shows that the condition in section 1217CE is not met, 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.