Part 2

Trading income
Chapter 9

Trade profits: films and sound recordings

Election for sections 134 to 140 not to apply

Election for sections 134 to 140 not to apply
143
1
A person carrying on a trade which consists of or includes the exploitation of original master versions of films may elect for sections 134 to 140 not to apply in relation to expenditure if—
a
the person incurs expenditure on the production or acquisition of an original master version of a film,
b
the original master version is a certified master version,
c
its value is expected to be realisable over a period of not less than two years, and
d
the film is genuinely intended for theatrical release.
2
The election must relate to all expenditure—
a
incurred, or
b
to be incurred,
on the production or acquisition of the original master version in question.
3
The election is irrevocable.
4
The election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year in which ends the relevant period in which the original master version of the film is completed.
5
For this purpose a film is completed—
a
at the time given by section 131(5), or
b
if the expenditure is acquisition expenditure and the acquisition takes place after that time, at the time of the acquisition.
6
No election may be made in relation to expenditure on the production or acquisition of an original master version of a film if any of that expenditure has been allocated—
a
under any of sections 137 to 140 above, or
b
under section 41 or 42 of F(No.2)A 1992.