Section 1217AB | Video games development company ^F1

(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by the company by being included in its company tax return for an accounting period (and may be included in the return originally made or by amendment), and

(b)may be withdrawn by the company only by amending its company tax return for that accounting period.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.