Part 15

Film production
Chapter 2

Taxation of activities of film production company

Separate film trade

Calculation of profits or losses of separate film trade
1189
1
This section applies for the purpose of calculating the profits or losses of the separate film trade.
2
For the first period of account the following are brought into account—
a
as a debit, the costs of the film incurred (and represented in work done) to date, and
b
as a credit, the proportion of the estimated total income from the film 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 film 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 film 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—
C/T × I
where—
C is the total to date of costs incurred (and represented in work done),
T is the estimated total cost of the film, and
I is the estimated total income from the film.
Pt. 15 applied (with modifications) by S.I. 2007/1050, regs. 3-12 (as amended (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 2 para. 131 (with Sch. 2 Pts. 1, 2))