116(1)Sections 40A to 40D of F(No.2)A 1992 (films) apply with the necessary modifications in relation to—U.K.
(a)expenditure on the production of a film—
(i)completed before 21st March 2000, or
(ii)completed on or after that date, if the first day of principal photography is before that date, unless the person incurring the expenditure elects that those modifications should not apply;
(b)expenditure on the acquisition of a film, tape or disc incurred before 6th April 2000.
(2)The necessary modifications are—
(a)the substitution for section 40A(1) of—
“(1)Expenditure which—
(a)is incurred on the production or acquisition of a film, tape or disc, and
(b)would, apart from this subsection, constitute capital expenditure on the provision of plant or machinery for the purposes of Part 2 of the Capital Allowances Act,
is to be regarded for the purposes of the Tax Acts as expenditure of a revenue nature unless an election under section 40D below has effect with respect to it.”;
(b)in section 40A(2), the substitution of “ the production or acquisition of a film, tape or disc ” for “the master version of a film” and of “ of the film, tape or disc ” for “of the master version”;
(c)in section 40A(3), the substitution of “ film, tape or disc ” for “master version of a film” and of “ the film, tape or disc ” for “the master version” (in both places);
(d)the substitution for section 40A(5) of—
“(5)In this section and sections 40B to 40D below—
(a)any reference to a film is a reference to an original master negative of the film and its soundtrack, if any;
(b)any reference to a tape is a reference to an original master film tape or original master audio tape; and
(c)any reference to a disc is a reference to an original master film disc or original master audio disc;
and any reference to the acquisition of a film, tape or disc includes a a reference to the acquisition of any description of rights in a film, tape or disc.”;
(e)in section 40B(1), the substitution of “ films, tapes or discs ” for “master versions of films” and of “ film, tape or disc ” for “master version of a film”;
(f)in section 40B(4), the substitution of “ film, tape or disc ” for “master version of the film” and of “ film, tape or disc ” for “master version”;
(g)in section 40B(5), the substitution of “ film, tape or disc ” for “master version of the film”;
(h)in section 40C(1), the substitution of “ film, tape or disc ” for “master version of the film”;
(i)in section 40C(2), the substitution of “ film, tape or disc ” for “master version of the film”;
(j)in section 40D(2), the substitution of “ films, tapes or discs ” for “master versions of films”, of “ film, tape or disc ” for “master version of a film” and of “ the film, tape or disc ” for “the master version” (in both places);
(k)in section 40D(3), the substitution of “ film, tape or disc ” for “master version”;
(l)in section 40D(4), the substitution of “ film, tape or disc ” for “master version of the film” (in both places);
(m)in section 40D(6), the substitution of “ a film, tape or disc ” for “the master version of a film” and of “ of the film, tape or disc ” for “of the master version”; and
(n)in section 40D(7), the substitution of “ film, tape or disc ” for “master version of a film”.
(3)An election under sub-paragraph (1)(a) is irrevocable.
(4)For the purposes of sub-paragraph (1)(a) a film is completed at the time when it is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public.
(5)In sub-paragraph (1)(b)—
(a)“film” means an original master negative of the film and its soundtrack, if any;
(b)“tape” means an original master film tape or original master audio tape; and
(c)“disc” means an original master film disc or original master audio disc;
and the acquisition of a film, tape or disc includes the acquisition of any description of rights in a film, tape or disc.