Additional deductionsU.K.
1199Additional deduction for qualifying expenditureU.K.
(1)If film tax relief is available to the company, it may (on making a claim) make an additional deduction in respect of qualifying expenditure on the film.
(2)The deduction is made in calculating the profit or loss of the separate film trade.
(3)In this Chapter “qualifying expenditure” means core expenditure on the film that falls to be taken into account under Chapter 2 in calculating the profit or loss of the separate film trade for tax purposes.
(4)The Treasury may by regulations—
(a)amend subsection (3), and
(b)provide that expenditure of a specified description is or is not to be regarded as qualifying expenditure.
1200Amount of additional deductionU.K.
(1)For the first period of account during which the separate film trade is carried on, the amount of the additional deduction is given by—
where—
E is—
(a) so much of the qualifying expenditure as is UK expenditure, or
(b) if less, 80% of the total amount of qualifying expenditure, and
R is the rate of enhancement (see subsection (3)).
(2)For any period of account after the first, the amount of the additional deduction is given by—
where—
E is—
(a) so much of the qualifying expenditure incurred to date as is UK expenditure, or
(b) if less, 80% of the total amount of qualifying expenditure incurred to date,
R is the rate of enhancement (see subsection (3)), and
P is the total amount of the additional deductions given for previous periods.
[F1(3)The rate of enhancement is 100%.]
(4)The Treasury may by regulations amend the percentage specified in subsection (1) or (2).
Textual Amendments
F1S. 1200(3) substituted (with effect in accordance with s. 29(8) of the amending Act) by Finance Act 2015 (c. 11), s. 29(3); S.I. 2015/1741, reg. 2