Section 357TF — Corporation Tax Act 2010: Restriction on use of losses while video game in development

Restriction on use of losses while video game in development 357TF 1 Section 1217DA of CTA 2009 (restriction on use of losses while video game in development) has effect subject as follows.

2 The reference in subsection (1) of that section to a loss made in the separate video game trade in a pre-completion period is, if the company is a Northern Ireland company in that period, a reference to—

a any Northern Ireland losses of the trade of the period, or b any mainstream losses of the trade of the period; and references to losses in subsections (2) and (3) of that section are to be read accordingly.

3 Subsection (4) applies if a Northern Ireland company has, in a pre-completion period—

a both Northern Ireland losses of the trade and mainstream profits of the trade, or b both mainstream losses of the trade and Northern Ireland profits of the trade.

4 The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).

5 But relief on such a claim is available only—

a in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;

b in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.

6 In this section “ a pre-completion period ” has the same meaning as in section 1217DA of CTA 2009 (see section 1217D(2) of that Act).