(1)Sections 1209 and 1210 apply to a company that is the film production company in relation to a film.
(2)In those sections—
“the completion period” means the accounting period of the company—
in which the film is completed, or
if the company does not complete the film, in which it abandons film-making activities in relation to the film,
“loss relief” includes any means by which a loss might be used to reduce the amount in respect of which the company, or any other person, is chargeable to tax,
“pre-completion period” means an accounting period of the company before the completion period, and
“the separate film trade” means the company’s separate trade in relation to the film (see section 1188).
(1)This section applies if in a pre-completion period a loss is made in the separate film trade.
(2)The loss is not available for loss relief except to the extent that it may be carried forward under section 393(1) of ICTA to be set against profits of the separate film trade in a subsequent period.
(1)This section applies to the following accounting periods of the company (“relevant later periods”)—
(a)the completion period, and
(b)any subsequent accounting period during which the separate film trade continues.
(2)Subsection (3) applies if a loss made in the separate film trade is carried forward under section 393(1) of ICTA from a pre-completion period to a relevant later period.
(3)So much (if any) of the loss as is not attributable to film tax relief (see subsection (6)) may be treated for the purposes of loss relief as if it were a loss made in the period to which it is carried forward.
(4)Subsection (5) applies if in a relevant later period a loss is made in the separate film trade.
(5)The amount of the loss that may be—
(a)set against other profits of the same or an earlier period under section 393A of ICTA, or
(b)surrendered as group relief under section 403 of that Act,
is restricted to the amount (if any) that is not attributable to film tax relief (see subsection (6)).
(6)The amount of a loss in any period that is attributable to film tax relief is calculated by deducting from the total amount of the loss the amount there would have been if there had been no additional deduction under Chapter 3 in that or any earlier period.
(7)This section does not apply to a loss to the extent that it is carried forward or surrendered under section 1211.
(1)This section applies if—
(a)a company (“company A”) is the film production company in relation to a qualifying film,
(b)company A ceases to carry on its separate trade in relation to that film (“trade X”) (see section 1188), and
(c)if company A had not ceased to carry on trade X, it could have carried forward an amount under section 393(1) of ICTA to be set against profits of trade X in a later period (“the terminal loss”).
(2)If on cessation of trade X company A—
(a)is the film production company in relation to another qualifying film, and
(b)is carrying on its separate trade in relation to that film (“trade Y”),
it may (on making a claim) make an election under subsection (3).
(3)The election is to have the terminal loss (or a part of it) treated as if it were a loss brought forward under section 393(1) of ICTA to be set against the profits of trade Y of the first accounting period beginning after the cessation and so on.
(4)Subsection (5) applies if on cessation of trade X—
(a)there is another company (“company B”) that is the film production company in relation to a qualifying film,
(b)company B is carrying on its separate trade in relation to that film (“trade Z”), and
(c)company B is in the same group as company A for the purposes of Chapter 4 of Part 10 of ICTA (group relief).
(5)Company A may surrender the terminal loss (or a part of it) to company B.
(6)On the making of a claim by company B the amount surrendered is treated as if it were a loss brought forward by company B under section 393(1) of ICTA to be set against the profits of trade Z of the first accounting period beginning after the cessation and so on.
(7)The Treasury may, in relation to the surrender of a loss under subsection (5) and the resulting claim under subsection (6), make provision by regulations corresponding, subject to such adaptations or other modifications as appear to them to be appropriate, to that made by Part 8 of Schedule 18 to FA 1998 (company tax returns: claims for group relief).
(8)“Qualifying film” means a film in relation to which the conditions for film tax relief are met (see section 1195(2)).