Corporation Tax Act 2009

1215 Film tax relief on basis that film is limited-budget film

(1) The company is not entitled to film tax relief for an interim accounting period on the basis that the film is a limited-budget film unless—

(a) its company tax return for the period states the amount of planned core expenditure on the film, and

(b) that amount is such as to indicate that the condition in section 1184(2) (definition of “limited-budget film”) will be met on completion of the film.

In that case, the film is provisionally treated in relation to that period as if that condition was met.

(2) If it subsequently appears that the condition will not be met on completion of the film, the company—

(a) is not entitled to film tax relief for any period on the basis that the film is a limited-budget film, and

(b) must amend accordingly its company tax return for any such period for which such relief has been claimed on that basis.

(3) When the film is completed or the company abandons film-making activities in relation to it (as the case may be), the company’s company tax return for the completion period must be accompanied by a final statement of the core expenditure on the film.

(4) Subsection (5) applies if that statement shows—

(a) that the film is not a limited-budget film, or (as the case may be)

(b) that, having regard to the proportion of work on the film that was completed, the film would not have been a limited-budget film had it been completed.

(5) The company—

(a) is not entitled to film tax relief for any period on the basis that the film is a limited-budget film, and

(b) must amend accordingly its company tax return for any period for which such relief was claimed on that basis.