(1)The restrictions under section 115 do not apply to so much of the loss (if any) as derives from unrestricted film expenditure.
(2)Expenditure is unrestricted film expenditure if—
(a)it is deducted under a relevant film provision for the purposes of the calculation required by section 849 of ITTOIA 2005 (calculation of firm’s profits or losses), or
(b)it is incidental expenditure which (although not deducted under a relevant film provision) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is so deducted.
(3)Expenditure is incidental if it is on management, administration or obtaining finance.
(4)The following are determined on a just and reasonable basis—
(a)the amount of the loss that derives from unrestricted film expenditure, and
(b)the extent to which expenditure is within subsection (2)(b).
(5)In this section—
“the acquisition of the original master version of a film” has the same meaning as in Chapter 9 of Part 2 of ITTOIA 2005 (see sections 130 and 132 of that Act),
“film” is to be read in accordance with paragraph 1 of Schedule 1 to the Films Act 1985, and
“a relevant film provision” means any one of sections 137 to 140 of ITTOIA 2005 (relief for certified master versions of films).