SCHEDULES
SCHEDULE 5Film tax relief: further provisions
Part 4Provisional entitlement to relief
Whether film a limited-budget film
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1
The company is not entitled to film tax relief for an interim accounting period on the basis that the film is a limited-budget film unless—
a
its company tax return for the period states the amount of planned core expenditure on the film, and
b
that amount is such as to indicate that the condition in section 34(2) (definition of “limited-budget film”) will be met on completion of the film.
In that case, the film is provisionally treated in relation to that period as if that condition was met.
2
If it subsequently appears that the condition will not be met on completion of the film, the company—
a
is not entitled to film tax relief for any period on the basis that the film is a limited-budget film, and
b
must amend accordingly its company tax return for any such period for which relief has been claimed on that basis.
3
When the film is completed or, as the case may be, the company abandons film-making activities in relation to it—
a
its company tax return for the final accounting period must—
i
state that the film has been completed or, as the case may be, the company has abandoned film-making activities in relation to it, and
ii
be accompanied by a final statement of the core expenditure on the film; and
b
if the return shows that the film is not a limited-budget film, or (as the case may be) that having regard to the proportion of work on the film that was completed, it would not have been a limited-budget film if it had been completed, the company—
i
is not entitled to film tax relief for any period on the basis that the film is a limited-budget film, and
ii
must amend accordingly its company tax return for any period for which such relief was claimed on that basis.