Finance Act 2005

Section 141 of the Income Tax (Trading and Other Income) Act 2005 (c. 5)

15 (1) Section 141 of ITTOIA 2005 (“total production expenditure in respect of the original master version”) is amended as follows.

(2) In subsection (1) after “sections” insert “138A,”.

(3) In subsection (4) for “Any” substitute “For the purposes of sections 139(1)(e) and 140(1)(f) only, any”.

(4) Subject to sub-paragraphs (5) to (7), the amendments made by this paragraph have effect for the year 2005-06 and subsequent years of assessment.

(5) Those amendments do not have effect in relation to expenditure relating to films which had their first day of principal photography before 2nd December 2004.

(6) Sub-paragraph (7) applies where, in a case to which section 140 of ITTOIA 2005 applies—

(a) the film in question had its first day of principal photography on or after 2nd December 2004,

(b) any or all of the expenditure within subsection (1)(a) of that section is pre-announcement expenditure,

(c) the amount of that pre-announcement expenditure exceeds the new expenditure cap, and

(d) the amount of the original expenditure cap exceeds the amount of the new expenditure cap.

(7) Where this sub-paragraph applies, the reference in subsection (5) of section 140 of that Act to “the total production expenditure in respect of the original master version” is to be read as a reference to the lower of—

(a) the amount of that pre-announcement expenditure, and

(b) the amount of the original expenditure cap.

(8) For the purposes of sub-paragraphs (6) and (7), in a case to which section 140 of that Act applies—

• “the new expenditure cap” means the amount of “the total production expenditure in respect of the original master version” as defined for the purposes of subsection (5) of that section by section 141 of that Act as amended by this paragraph;

• “the original expenditure cap” means the amount of “the total production expenditure in respect of the original master version” as defined for those purposes by section 141 of that Act disregarding the amendments made by this paragraph.