[F1Separate programme tradeU.K.
Textual Amendments
F1Pt. 15A inserted (17.7.2003 for specified purposes, 19.7.2003 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)
1216BActivities of television production company treated as a separate tradeU.K.
(1)This Chapter applies for corporation tax purposes to a company that is the television production company in relation to a relevant programme.
(2)The company's activities in relation to the programme are treated as a trade separate from any other activities of the company (including any activities in relation to any other television programme).
(3)In this Chapter the separate trade is called “the separate programme trade”.
(4)The company is treated as beginning to carry on the separate programme trade—
(a)when pre-production begins, or
(b)if earlier, when any income from the relevant programme is received by the company.
1216BACalculation of profits or losses of separate programme tradeU.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.]