Corporation Tax Act 2009 (c. 4)

[F1 PART 15A U.K. Television production

Textual Amendments

F1 Pt. 15A inserted (17.7.2013 for specified purposes, 19.7.2013 in so far as not already in force, and with effect in accordance with Sch. 16 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 16 paras. 1, 2; S.I. 2013/1817, art. 2(1)

CHAPTER 2 U.K. Taxation of activities of television production company

Separate programme trade U.K.

1216BA Calculation of profits or losses of separate programme trade U.K.

(1) This section applies for the purpose of calculating the profits or losses of the separate programme trade.

(2) For the first period of account the following are brought into account—

(a) as a debit, the costs of the relevant programme incurred (and represented in work done) to date, and

(b) as a credit, the proportion of the estimated total income from the relevant programme treated as earned at the end of that period.

(3) For subsequent periods of account the following are brought into account—

(a) as a debit, the difference between the amount of the costs of the relevant programme incurred (and represented in work done) to date and the corresponding amount for the previous period, and

(b) as a credit, the difference between the proportion of the estimated total income from the relevant programme treated as earned at the end of that period and the corresponding amount for the previous period.

(4) The proportion of the estimated total income treated as earned at the end of a period of account is given by—

where—

C is the total to date of costs incurred (and represented in work done),

T is the estimated total cost of the relevant programme, and

I is the estimated total income from the relevant programme.]