Section 1217DB | Use of losses in later periods

(1)This section applies to the following accounting periods of the company (“relevant later periods”)—

(a)the completion period, and

(b)any subsequent accounting period during which the separate video game trade continues.

(2)Subsection (3) applies if a loss made in the separate video game trade is carried forward under section 45 or 45B of CTA 2010 from a pre-completion period to a relevant later period.

(3)So much (if any) of the loss as is not attributable to video games tax relief (see subsection (6)) may be treated for the purposes of section 37 and Part 5 of CTA 2010 as if it were a loss made in the period to which it is carried forward.

(4)Subsections (5) and (5A) apply if in a relevant later period a loss is made in the separate video game trade.

(5)The amount of the loss that may be—

(a)deducted from total profits of the same or an earlier period under section 37 of CTA 2010, or

(ab)carried forward under section 45A of that Act to be deducted from the total profits of a later period,

(b)surrendered as group relief under Part 5 of that Act,

is restricted to the amount (if any) that is not attributable to video games tax relief (see subsection (6)).

(5A)A deduction under section 45 or 45B of CTA 2010 which is made in respect of so much of the loss as is attributable to video games tax relief is to be ignored for the purposes of section 269ZB of that Act (restriction on deductions from trading profits).

(6)The amount of a loss in any period that is attributable to video games tax relief is calculated by deducting from the total amount of the loss the amount there would have been if there had been no additional deduction under Chapter 3 in that or any earlier period.

(7)This section does not apply to a loss to the extent that it is carried forward or surrendered under section 1217DC.