»Ê¹ÚÌåÓýapp

S940B-S953 Corporation Tax Act 2010 (CTA 2010)

»Ê¹ÚÌåÓýapp rules on transfers of trades in CTA 2010 do not apply to transfers of video game trades between companies in common ownership.

»Ê¹ÚÌåÓýapp legislation in CTA 2010 prevents the trade from being treated as permanently discontinued in the hands of the first company and a new trade starting in the hands of the second company. Instead, the second company is treated as succeeding to the trade of the first company.

»Ê¹ÚÌåÓýapp video game tax regime permits only one company to be the Video Games Development Company (VGDC) in relation to a video game and treats the activities of that company in relation to each video game as a separate trade.

As a result, once a video game trade has commenced it is impossible for a second company to succeed to the trade in relation to the video game. »Ê¹ÚÌåÓýapp rules in CTA 2010 do not apply.

Where a VGDC carries on a trade in relation to a qualifying video game and that trade ceases, it may be able to pass any losses on to:

• another trade in relation to a qualifying video game that it is carrying on at the time of the cessation, or
• to another trade in relation to a qualifying video game that another group company is carrying on at the time of the cessation.

See VGDC30040 for details.