The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note sets out the main provisions for video games tax relief (VGTR). These were introduced by Finance Act 2013 and are included in CTA 2009, ss 1217A–1217EC (Pt 15B). Following an in-depth investigation by the European Commission to determine whether the development of video games in the UK requires support in the form of tax incentives, it concluded that the relief is compatible with EU State Aid rules in March 2014. The relief came into effect from 1 April 2014. The provisions for the cultural test in relation to video games relief are set out in SI 2014/1958, which came into force on 19 August 2014.
Details of the tax relief available for television programmes and animation can be found in the Television tax reliefs ― key provisions guidance note. The European Commission has provided state aid approval for these two reliefs. HMRC is accepting claims from 1 April 2013. The reliefs are very similar although there are some differences in terminology.
Post 1 January 2021, with the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU, state aid rules have been replaced by a subsidy control system in the EU-UK Trade and Cooperation Agreement (TCA) which prohibits certain specified subsidies if the subsidies concerned have or could have a material effect on trade or investment between the EU and the UK. However there is currently no detail on the operation of the subsidy control system or how it will interact with the Northern Ireland Protocol which maintains some aspects of the EU state aid rules.
The VGTR is available for accounting periods commencing on or after 1 April 2014. The legislation sets out the provisions which deal with accounting periods straddling this date. Companies which carry out the development of video games may obtain an additional deduction for corporation tax purposes. The deduction is based on the company’s qualifying UK or EEA core expenditure (referred to as
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This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
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