SCHEDULES

SCHEDULE 5Film tax relief: further provisions

Part 1Entitlement to film tax relief

Artificially inflated claims for deduction or film tax credit

13

1

To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for any period—

a

any additional deduction to which a company is entitled under this Part of this Schedule, and

b

any film tax credit to which a company is entitled.

2

Arrangements are entered into wholly or mainly for a disqualifying purpose if their main object, or one of their main objects, is to enable a company to obtain—

a

an additional deduction under this Part of this Schedule to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, or

b

a film tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled.

3

In this paragraph “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.