Section 1: Trading Profits Taxable at the Northern Ireland Rate Chapter 13
78.Chapter 13 modifies the operation of Part 15B of CTA 2009 (video games production) in relation to expenditure incurred by a company which is a Northern Ireland company in an accounting period.
79.Part 15B of CTA 2009 provides for an additional deduction for qualifying expenditure on a qualifying video game. This deduction together with any tax deductible video game expenditure is deducted from the income arising from the video game. Any resultant loss may be surrendered for a payable tax credit.
80.Chapter 13 of Part 8B provides that where all or some of the qualifying expenditure is Northern Ireland expenditure (as defined in new section 357T(2)(a)), the company is entitled to a supplementary deduction. The amount of the supplementary deduction is set to give the same cash value of the relief the company would have received if none of the expenditure were Northern Ireland expenditure.
81.Chapter 13 also ensures that the same amount of video game tax credit is payable under section 1217CH of CTA 2009 and that the restricted loss relief rules for video game losses are maintained.