C1Part 3Trading income
Chapter 9Trade profits: other specific trades
Sound recordings
150Revenue nature of expenditure
1
If a company carrying on a trade incurs expenditure on the production or acquisition of the original master version of a sound recording, the expenditure is treated for corporation tax purposes as expenditure of a revenue nature.
2
If expenditure is treated under this section as revenue in nature, sums received by the company from the disposal of the original master version of the sound recording—
a
are treated for corporation tax purposes as receipts of a revenue nature, and
b
are brought into account in calculating the profits of the relevant period in which they are received.
3
For this purpose sums received from the disposal of the original master version include—
a
sums received from the disposal of any interest or right in or over the original master version (including an interest or right created by the disposal), and
b
insurance, compensation or similar money derived from the original master version.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)