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HMRC internal manual

Video Games Development Company Manual

Claims: amending returns

S1217EC Corporation Tax Act 2009

The normal time limits for amending returns and making assessments are overridden in certain circumstances.

This will occur where the Video Games Development Company (VGDC) is required to amend a return to reflect the fact that the VGDC was not entitled to Video Games Tax Relief (VGTR) for a period because of:

  • a loss of the video game’s status as a British video game, or
  • the level of EEA expenditure failing to achieve 25% of core expenditure.

This applies to assessments and situations where the VGTR claimed was in excess of that the VGDC was eligible to.

Where, under the amended return, the VGDC is entitled to less relief than under the original return and therefore has to repay HMRC, interest will be due. Penalties will not typically be due unless the erroneous claim was made due to carelessness or deliberately.

This is the case whether the VGTR simply reduced the Corporation Tax payable by the company or a claim for the payable tax credit was made.