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Part 15U.K.Film production

Modifications etc. (not altering text)

C1Pt. 15 applied (with modifications) by S.I. 2007/1050, regs. 3-12 (as amended (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 2 para. 131 (with Sch. 2 Pts. 1, 2))

Chapter 2U.K.Taxation of activities of film production company

SupplementaryU.K.

1192When costs are taken to be incurredU.K.

(1)For the purposes of this Chapter costs are incurred when they are represented in the state of completion of the work in progress.

(2)Accordingly—

(a)payments in advance of work to be done are ignored until the work has been carried out, and

(b)deferred payments are recognised to the extent that the work is represented in the state of completion.

(3)The costs incurred on the film are taken to include an amount that has not been paid only if it is the subject of an unconditional obligation to pay.

(4)If an obligation is linked to income being earned from the film, no amount is to be brought into account in respect of the costs of the obligation unless an appropriate amount of income is or has been brought into account.