Search Legislation

Finance Act 2006

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes to legislation:

There are currently no known outstanding effects for the Finance Act 2006, Chapter 3. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Chapter 3U.K.Films and sound recordings

Modifications etc. (not altering text)

C1Pt. 3 Ch. 3 applied (with modifications) (29.3.2007) by The Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050), reg. 3-12 (with effect reg. 1(2)) (as amended by Corporation Tax Act 2009 (c. 4), Sch. 2 para. 131)

C2Pt. 3 Ch. 3 power to apply (with modifications) conferred (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 2 para. 130 (with Sch. 2 Pts. 1, 2)

IntroductoryU.K.

F131Meaning of “film” and related expressionsU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F132Meaning of “film production company”U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F133Meaning of “film-making activities” etcU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F134Meaning of “production expenditure” and related expressionsU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F135Meaning of “UK expenditure”U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F136Meaning of “qualifying co-production” and “co-producer”U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Taxation of activities of film production companyU.K.

F137Taxation of activities of film production companyU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Film tax reliefU.K.

F138Films qualifying for film tax reliefU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F139Conditions of relief: intended theatrical releaseU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F140Conditions of relief: British filmU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F141Conditions of relief: UK expenditureU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Ss. 31-41 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 676, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

42Film tax relief: further provisionsU.K.

(1)Schedule 5 to this Act contains further provisions about film tax relief.

(2)In that Schedule—

  • F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • Part 2 provides for the certification of British films for the purposes of the relief;

  • Part 3 makes provision for claims for the relief;

  • F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2Words in s. 42(2) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 677(a), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Film lossesU.K.

F343Films: restriction on use of losses while film in productionU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3Ss. 43-45 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 678, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F344Films: use of losses in later periodsU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3Ss. 43-45 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 678, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F345Films: terminal lossesU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3Ss. 43-45 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 678, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Films: withdrawal of existing reliefsU.K.

46Films: withdrawal of existing reliefs (corporation tax)U.K.

(1)Sections 40A to 40D of F(No.2)A 1992 (treatment of expenditure on production or acquisition of film) do not apply—

(a)to production expenditure on a film that commences principal photography on or after [F41st January 2007];

(b)to acquisition expenditure—

(i)on a film that commences principal photography on or after [F41st January 2007], or

(ii)that is incurred on or after 1st October 2007 on a film (whenever made).

(2)Section 41 of that Act (preliminary expenditure) does not apply to expenditure incurred after the date on which this Act is passed.

(3)Section 42 of that Act and section 48 of F(No.2)A 1997 (special reliefs for British films) do not apply—

(a)to production expenditure on a film that commences principal photography on or after [F41st January 2007];

(b)to acquisition expenditure—

(i)on a film that commences principal photography on or after [F41st January 2007], or

(ii)that is incurred on or after 1st October 2007.

(4)References in this section to expenditure on the acquisition of a film, or to sums received from the disposal of a film, are to expenditure on the acquisition of, or sums received from the disposal of, the original master version of the film.

(5)For this purpose—

(a)original master version” means the original negative, tape or disc;

(b)references to the original master version of a film include the original master version of the film soundtrack (if any);

(c)references to the original master version include any rights in the original master version that are held or acquired with it.

[F5(6)The provisions of sections 1181 to 1187 of CTA 2009 apply for the purposes of this section as if this section were contained in Part 15 of that Act.]

Textual Amendments

F4Words in s. 46(1)(a)(b)(i),(3)(a)(b)(i) substituted (29.12.2006) by The Finance Act 2006, Section 53(2) (Films and Sound Recordings: Power to alter Dates) Order 2006 (S.I. 2006/3265), {art. 2}

F5S. 46(6) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 679 (with Sch. 2 Pts. 1, 2)

47Films: withdrawal of existing reliefs (income tax)U.K.

(1)Sections 134 and 135 of ITTOIA 2005 (treatment of expenditure on production or acquisition of film) do not apply—

(a)to production expenditure on a film that commences principal photography on or after [F61st January 2007] ;

(b)to acquisition expenditure—

(i)on a film that commences principal photography on or after [F61st January 2007], or

(ii)that is incurred on or after 1st October 2007 on a film (whenever made).

(2)Section 137 of that Act (preliminary expenditure) does not apply to expenditure incurred after the date on which this Act is passed.

(3)Sections 138 to 144 of that Act (special reliefs for British films) do not apply—

(a)to production expenditure on a film that commences principal photography on or after [F61st January 2007];

(b)to acquisition expenditure—

(i)on a film that commences principal photography on or after [F61st January 2007], or

(ii)that is incurred on or after 1st October 2007.

(4)References in this section to expenditure on the acquisition of a film, or to sums received from the disposal of a film, are to expenditure on the acquisition of, or sums received from the disposal of, the original master version of the film.

(5)For this purpose—

(a)original master version” means the original negative, tape or disc;

(b)references to the original master version of a film include the original master version of the film soundtrack (if any);

(c)references to the original master version include any rights in the original master version that are held or acquired with it.

[F7(6)The provisions of sections 1181 to 1187 of CTA 2009 apply for the purposes of this section as if this section were contained in Part 15 of that Act.]

Textual Amendments

F6Words in s. 47(1)(a)(b)(i)(3)(a)(b)(i) substituted (29.12.2006) by The Finance Act 2006, Section 53(2) (Films and Sound Recordings: Power to alter Dates) Order 2006 (S.I. 2006/3265), {art. 2}

F7S. 47(6) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 679 (with Sch. 2 Pts. 1, 2)

Corporation tax treatment of sound recordingsU.K.

F848Sound recordings: revenue nature of expenditureU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8Ss. 48-50 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 680, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F849Sound recordings: allocation of expenditureU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8Ss. 48-50 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 680, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F850Sound recordings: interpretationU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8Ss. 48-50 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 680, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Supplementary provisionsU.K.

F951Corporation tax: films and sound recordings as intangible fixed assetsU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9S. 51 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F1052Films: application of provisions to certain films already in productionU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F10S. 52 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 681, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

53Films and sound recordings: commencement and power to alter datesU.K.

(1)The provisions of this Chapter come into force on such day as the Treasury may appoint by order.

F11(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subordinate Legislation Made

P1S. 53(1) power fully exercised: 1.1.2007 appointed by {S.I. 2006/3399}, art. 2

Textual Amendments

F11S. 53(2) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 682, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources