Chapter 1: Introduction
6.New sections 1216A (1) to 1216A (6) set out the scope and basic concepts of the legislation contained within each Chapter.
7.New section 1216AA (2) defines the meaning of ‘television programme’ for the purposes of the Chapter.
8.New section 1216AA (3) clarifies that the section includes the internet.
9.New section 1216AA (4) provides that where qualifying programmes are commissioned as an individual series or serial that series or serial is treated as a single television programme. A single qualifying programme commissioned separately (for example a pilot programme) is treated as a single programme.
10.New section 1216AA(5) provides that a programme is treated as being complete when it is first in a form in which it can be reasonably regarded as ready for broadcast to the general public.
11.New section 1216AB (2) provides that a ‘relevant programme’ for the purposes of the legislation is one which meets certain conditions of A and B, and C and D.
12.New section 1216AB (3) sets out condition A which is that the programme is: a drama, a documentary, or animation. These terms are further defined at new section 1216AC.
13.New section 1216AB (4) sets out condition B which is that the programme is not an excluded programme as defined in section 1216AD.
14.New section 1216AB (5) sets out condition C, which is that a programme slot length must be greater than 30 minutes.
15.New sections 1216AB (6) sets out condition D which is that the average core expenditure, as defined by new section 1216AG, per hour of slot length, as defined by 1216AB (8), is not less than £1 million (one million pounds sterling).
16.New section 1216AB (7) defines ‘slot length’ for the purposes of new section 1216AB (6).
17.New section 1216AC (2) provides that for the purposes of new section 1216AB(3) a programme is a ‘drama’ if it consists:
Wholly or mainly of a depiction of events
The events are depicted (wholly or mainly) by one or more persons performing; and,
The whole or major proportion of what is done by the person or persons performing, whether by way of speech, acting, singing, or dancing, involves the playing of a role.
For the purposes of new section 1216AC (2) ‘drama’ also includes comedy.
18.New section 1216AC (3) provides that a relevant programme is to be treated as animation if at least 51% of total core expenditure is on animation.
19.New section 1216AD (1) provides that a television programme is an excluded programme (i.e. it is not within the scope of the reliefs) if it falls within any of the Heads set out in new sub sections 1216AD (2) to 1216AD (7).
20.New section 1216AD (2) provides that any advertisement or other promotional programme is an excluded programme.
21.New section 1216AD (3) provides that any news, current affairs or discussion programme is an excluded programme.
22.New section 1216AD (4) provides that quiz shows, game shows, panel shows, variety shows, chat shows or similar entertainment are excluded programmes.
23.New section 1216AD (5) provides that any programme consisting of or including a competition or contest, or the results of a competition or contest is an excluded programme.
24.New section 1216AD (6) provides that any broadcast of a live event or of a theatrical or artistic performance given otherwise than for the purpose of being filmed is an excluded programme.
25.New section 1216AD (7) provides that any programmes produced for training purposes is an excluded programme.
26.New section 1216AE (2) provides that there can only be one television production company in relation to a relevant programme.
27.New section 1216AE (3) sets out the general rule that governs whether a company is a television production company in relation to a relevant programme. The company must be responsible for pre-production, principal photography and post production of the relevant programme, as well as for delivery of the completed programme. The company must be actively engaged in planning and decision taking during those stages of a programme’s production; and it must directly negotiate, contract and pay for rights, goods and services.
28.New section 1216AE (4) sets out a special rule for qualifying co-productions as defined in new section 1216AI. A company, which is a co-producer, in relation to a relevant programme must make an effective creative, technical and artistic contribution to the programme (so long as it does not do this in partnership). Co-producers who only provide finance are excluded.
29.New section 1216AE(5) recognises that there may be more than one company meeting the conditions of 1216AE(3) and (4) and provides that where this is the case, the company most directly engaged in the activities referred to is the television production company in relation to the relevant programme.
30.New sections 1216AE (6) makes it clear that it is possible that there may be no television production company in relation to the relevant programme.
31.New sections 1216AE (7) to (9) allows for a company to be regarded as a company not meeting the description in 1216AE (3) and (4) provided it makes an election in its company tax return for an accounting period. That election has effect in relation to relevant programmes which commence principal photography in that or any subsequent accounting period.
32.New sections 1216AF (1) provides that ‘television production activities’ includes work on development, pre-production, principal photography and post production of the programme.
33.New section 1216AF (2) provides that where any of the programme is computer generated, references to principal photography include computer generation of the images.
34.New section 1216AF (3) provides that HM Treasury may, by regulations amend subsections 1216AF (1) and (2) and in particular provide that certain activities are not television production activities.
35.New sections 1216AG (2) to (3) define what is meant by ‘production expenditure’ and ‘core expenditure’ in relation to the relevant programme.
36.New sections 1216AH (1) to (2) provide that for the purposes of the legislation “UK expenditure” means expenditure on goods or services that are used or consumed in the United Kingdom. The nationality of those providing the goods and services has no bearing on whether the expenditure qualifies. The ‘used or consumed’ test does not focus on the supplier of goods and services, but instead concentrates on the recipient or customer as the means of determining UK qualifying expenditure. Any apportionment between non-UK expenditure and UK expenditure is made on a just and reasonable basis.
37.New section 1216AI defines ‘qualifying co-producer’ and ‘co-producer’ for the purposes of new section 1216AE (4).
