Corporation Tax Act 2009 section 1217BB

Income from the video game

Section 1217BB defines what counts as "income from the video game" for the purposes of video game tax relief, covering all receipts connected with the making or commercial exploitation of a video game.

• Income from a video game includes any receipts connected with its making or its exploitation, such as sales proceeds, royalties, licensing fees, and profit share payments.
• Royalties or other payments for the use of the video game or elements of it — for example characters or music — are included as income.
• Payments received for rights to produce games or other merchandise based on the video game also fall within the definition of income.
• Any receipts that would normally be treated as capital in nature are instead treated as revenue income for the purposes of this provision.