Part 3Income tax, corporation tax and capital gains tax
C1C2 Chapter 3Films and sound recordings
Pt. 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)
Introductory
F931Meaning of “film” and related expressions
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F932Meaning of “film production company”
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F933Meaning of “film-making activities” etc
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F934Meaning of “production expenditure” and related expressions
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F935Meaning of “UK expenditure”
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F936Meaning of “qualifying co-production” and “co-producer”
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Taxation of activities of film production company
F937Taxation of activities of film production company
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Film tax relief
F938Films qualifying for film tax relief
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F939Conditions of relief: intended theatrical release
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F940Conditions of relief: British film
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F941Conditions of relief: UK expenditure
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42Film tax relief: further provisions
1
Schedule 5 to this Act contains further provisions about film tax relief.
2
Film losses
F1043Films: restriction on use of losses while film in production
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F1044Films: use of losses in later periods
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F1045Films: terminal losses
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Films: withdrawal of existing reliefs
46Films: withdrawal of existing reliefs (corporation tax)
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 F11st January 2007;
b
to acquisition expenditure—
i
on a film that commences principal photography on or after F11st 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 F11st January 2007;
b
to acquisition expenditure—
i
on a film that commences principal photography on or after F11st 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.
F46
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.
47Films: withdrawal of existing reliefs (income tax)
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 F21st January 2007 ;
b
to acquisition expenditure—
i
on a film that commences principal photography on or after F21st 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 F21st January 2007;
b
to acquisition expenditure—
i
on a film that commences principal photography on or after F21st 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.
F56
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.
Corporation tax treatment of sound recordings
F1148Sound recordings: revenue nature of expenditure
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F1149Sound recordings: allocation of expenditure
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F1150Sound recordings: interpretation
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Supplementary provisions
F651Corporation tax: films and sound recordings as intangible fixed assets
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F752Films: application of provisions to certain films already in production
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53Films and sound recordings: commencement and power to alter dates
P11
The provisions of this Chapter come into force on such day as the Treasury may appoint by order.
F82
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Pt. 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)