Claims: payment of credit
S1217CJ Corporation Tax Act 2009
Set off against other liabilities
Where a Video Games Development Company (VGDC) claims a payable tax credit it is entitled to, it must be paid to it unless:
- the VGDC owes Corporation Tax then the credit and any repayment interest due to the company may be used to offset the liability, or
- if the VGDC has outstanding or purported liabilities for PAYE, deductions under S966 Income Tax Act 2007 (visiting performers) or Class 1 National Insurance contributions for the period for which the credit is owed, the payment may be withheld, or
- if the VGDC’s Corporation Tax return for the period in question is enquired into by HMRC then the payment may be withheld. A provisional partial payment may be made if appropriate.
Payment of the payable video games tax credit will carry interest from the later of:
- the filing date for the VGDC’s tax return for the period in relation to which the credit is payable, and
- the date on which the tax return (or amended return) in which the claim is included was submitted to HMRC.