Valid from 06/04/2005
31(1)This paragraph applies to—U.K.
(a)production expenditure in respect of the original master version of a film which (within the meaning of Chapter 9 of Part 2) was completed before 21st March 2000,
(b)production expenditure in respect of the original master version of a film which (within the meaning of that Chapter) is completed on or after that date, if the first day of principal photography was before that date (but see sub-paragraph (4)), and
(c)acquisition expenditure in respect of the original master version of a film which was incurred before 6th April 2000.
(2)For this purpose acquisition expenditure in respect of the original master version of a film includes the acquisition of any description of rights in the original master version of a film (whether or not held or acquired with it).
(3)In relation to expenditure to which this paragraph applies—
(a)section 130(4) applies with the omission of “that are held or acquired with it”,
(b)section 131(5) applies with the insertion at the end of “ or, if the expenditure is acquisition expenditure and the acquisition takes place after that time, at the time of the acquisition ”, and
(c)section 134(1) applies with the insertion after “acquisition expenditure,” of “ and the expenditure would otherwise constitute capital expenditure on the provision of plant or machinery for the purposes of Part 2 of CAA 2001, ”.
(4)This paragraph does not apply to expenditure falling within sub-paragraph (1)(b) if the person incurring the expenditure so elects.
(5)Any such election is irrevocable.
32(1)Sections 134 and 135 do not apply in relation to expenditure incurred by a person carrying on a trade which consists of or includes the exploitation of original master versions of films if—U.K.
(a)the expenditure is incurred on the production or acquisition of an original master version of a film completed before 10th March 1992 (within the meaning of Chapter 9 of Part 2),
(b)the original master version is a certified master version,
(c)its value is expected to be realised over a period of not less than two years, and
(d)the film is genuinely intended for theatrical release.
(2)Sub-paragraph (1)(d) does not apply if—
(a)the original master version of the film was certified before 17th April 2002 by the Secretary of State under Schedule 1 to the Films Act 1985 (c. 21) as a qualifying film, tape or disc, or
(b)an application for such certification was received by the Secretary of State before that date.
33U.K.Section 137 does not apply in relation to expenditure which was incurred before 10th March 1992.
34Section 138 does not apply in relation to production or acquisition expenditure in respect of the original master version of a film which was completed before 10th March 1992.
35(1)Any requirement in Chapter 9 of Part 2 for a film to be genuinely intended for theatrical release does not apply to a film completed (within the meaning of that Chapter)—U.K.
(a)on or after 17th April 2002 if—
(i)an application for certification was received by the Secretary of State before that date, or
(ii)the film is a qualifying drama (see sub-paragraph (2)),
(b)before 1st January 2002 if—
(i)the film was certified by the Secretary of State before 17th April 2002, or
(ii)an application for certification was received by the Secretary of State before 17th April 2002, or
(c)at any time in the period beginning with 1st January 2002 and ending with 16th April 2002.
References in this sub-paragraph to certification are to certification of the original master version of the film under Schedule 1 to the Films Act 1985 (c. 21) as a qualifying film, tape or disc.
(2)A film is a qualifying drama if—
(a)it is a drama with an average production expenditure per hour of running time of the completed film greater than £500,000,
(b)it was commissioned on or before 17th April 2002, and
(c)the first day of principal photography was on or before 30th June 2002.
(3)For the purposes of sub-paragraph (2) “drama” does not include—
(a)anything in the nature of—
(i)an advertisement or promotional film,
(ii)a discussion programme, news or current affairs programme, quiz show, panel show, variety show or similar entertainment, or
(iii)a training film, or
(b)a film of a live event or of a theatrical or artistic performance given otherwise than for the purpose of being filmed,
but it includes a documentary involving the dramatic reconstruction of events if the dramatic content forms 50% or more of the running time.
(4)For the purposes of sub-paragraph (2) the production expenditure on a film means the total production expenditure in respect of the original master version of the film (as defined by section 141).
36U.K.Sections 139 and 140 do not apply if—
(a)the expenditure was incurred before 2nd July 1997 (as determined by section 142), or
(b)the film was completed before that date (within the meaning of Chapter 9 of Part 2).
37U.K.Sections 139(4) and 141(3) do not apply to any film which was completed before 17th April 2002.
38U.K.The requirement in section 140 for the acquisition to be a relevant acquisition does not apply in relation to expenditure which was incurred before 30th June 2002 (as determined by section 142).