Finance Act 2005

Part 4 Interpretation

Meaning of “pre-announcement expenditure”

32 (1) For the purposes of this Schedule “pre-announcement expenditure” means expenditure incurred—

(a) before 2nd December 2004, or

(b) on or after that date in pursuance of an obligation to incur the expenditure which immediately before that date was an unconditional obligation.

(2) In determining, for the purposes of sub-paragraph (1), whether an obligation in pursuance of which expenditure was incurred was an unconditional obligation immediately before 2nd December 2004, the obligation is not to be regarded as a conditional obligation at that time by reason only that it was contingent on one or more of the following conditions—

(a) a condition the fulfilment of which was outside the control of the person by whom the expenditure was incurred;

(b) a condition that the original master version of the film concerned is certified under Schedule 1 to the Films Act 1985 (c. 21) as a qualifying film, tape or disc for the purposes of section 40D of F(No 2)A 1992.

(3) For the purposes of this Schedule—

(a) a claim under section 42 of F(No 2)A 1992 in respect of expenditure incurred on the production or acquisition of the original master version of a film is a “claim in respect of pre-announcement expenditure only” if, and only if, all of the expenditure incurred by the claimant on the production or, as the case may be, acquisition of that version is pre-announcement expenditure, and

(b) a deduction under any of sections 138 to 140 of ITTOIA 2005 in respect of expenditure incurred on the production or acquisition of the original master version of a film is a “deduction in respect of pre-announcement expenditure only” if, and only if, all of the expenditure within subsection (1)(a) of the section under which the deduction is made is pre-announcement expenditure.

Meaning of film “in production”

33 (1) For the purposes of this Schedule a film was “in production” on 2nd December 2004 if it—

(a) had its first day of principal photography before that date, and

(b) was completed on or after that date.

(2) For this purpose a film is completed when it is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public.

Meaning of “film” and “original master version”

34 For the purposes of this Schedule—

• “film” is to be construed in accordance with paragraph 1 of Schedule 1 to the Films Act 1985 (c. 21);

• “original master version” is to be construed in accordance with section 43 of F(No 2)A 1992.