Part 15Film production

Chapter 3Film tax relief

Film tax credits

1201Film tax credit claimable if company has surrenderable loss

1

If film tax relief is available to the company, it may claim a film tax credit for an accounting period in which it has a surrenderable loss.

2

The company’s surrenderable loss in any period is—

a

the company’s loss for the period in the separate film trade, or

b

if less, the available qualifying expenditure for the period.

3

For the first period of account during which the separate film trade is carried on, the available qualifying expenditure is the amount that is E for that period for the purposes of section 1200(1).

4

For any period of account after the first, the available qualifying expenditure is given by—

E-Smath

where—

  • E is the amount that is E for that period for the purposes of section 1200(2), and

  • S is the total amount surrendered in previous periods under section 1202(1).