F2PART 15BVideo games development
CHAPTER 5Provisional entitlement to relief
1217EIntroduction
1
In this Chapter—
“the company” means the video games development company in relation to a video game,
“the completion period” means the accounting period of the company—
- a
in which the video game is completed, or
- b
if the company does not complete the video game, in which it abandons video game development activities in relation to it,
- a
“interim accounting period” means any earlier accounting period of the company during which video game development activities are carried on in relation to the video game,
“interim certificate” and “final certificate” have the meaning given by section 1217CC,
“the separate video game trade” means the company's separate trade in relation to the video game (see section 1217B), and
“special video games relief” means—
- a
video games tax relief, or
- b
relief under section 1217DC (transfer of terminal losses from one video game to another).
- a
2
The company's company tax return for the completion period must state that the video game has been completed or that the company has abandoned video game development activities in relation to it (as the case may be).
1217EACertification as a British video game
1
The company is not entitled to special video games relief for an interim accounting period unless its company tax return for the period is 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If an interim certificate ceases to be in force (otherwise than on being superseded by a final certificate) or is revoked, the company—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 video games relief for any period for which its entitlement depended on the certificate, and
b
must amend accordingly its company tax return for any such period.
3
If the video game is completed by the company—
a
its company tax return for the completion period must be accompanied by a final certificate,
b
if that requirement is met, the final certificate has effect for the completion period and for any interim accounting period, and
c
if that requirement is not met, the company—
i
is not entitled to special video games relief for any period, and
ii
must amend accordingly its company tax return for any period for which such relief was claimed.
4
If the company abandons video game development activities in relation to the video game—
a
its company tax return for the completion period may be accompanied by an interim certificate, and
b
the abandonment of video game development activities does not affect any entitlement to special video games relief in that or any previous accounting period.
5
If a final certificate is revoked, 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.
1217EBThe F1European expenditure condition
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 F1European expenditure, and
b
that amount is such as to indicate that the condition in section 1217CE (the F1European 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 F1European 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.
1217ECTime 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 time within which an amendment or assessment may normally be made.
Pt. 15B inserted (17.7.2013 for specified purposes and 1.4.2014 in so far as not already in force) by Finance Act 2013 (c. 29), Sch. 17 paras. 1, 2; S.I. 2014/1962, art. 2(1)(2)