Part 15Film production

Chapter 3Film tax relief

Film tax credits

1202Surrendering of loss and amount of film tax credit

1

The company may surrender the whole or part of its surrenderable loss in an accounting period.

2

If the company surrenders the whole or part of that loss, the amount of the film tax credit to which it is entitled for the accounting period is given by—

L×Rmath

where—

  • L is the amount of the loss surrendered, and

  • R is the payable credit rate (see subsection (3)).

3

The payable credit rate is—

a

for a limited-budget film, 25%, and

b

for any other film, 20%.

4

The company’s loss in the separate film trade for the accounting period is reduced by the amount surrendered.