(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 × R
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.