Commentary

D7.1210 Film production companies—loss relief

Corporate tax
Corporate tax | Commentary

D7.1210 Film production companies—loss relief

Corporate tax | Commentary

D7.1210 Film production companies—loss relief

Losses incurred by a film production company in any accounting period while the film is still in production can only be carried forward and set against future profits of that same trade1. They may not be relieved sideways, carried forward for relief against total profits or surrendered for group relief. Losses set against future profits of the trade are ignored for the purposes of the restriction on such deductions in CTA 2010, s 269ZB (see D1.1122)2 Where such losses are carried forward into the accounting period in which either the film is completed, or film-making activities in respect of the film are abandoned or to a subsequent accounting period in which the trade continues3, they are treated for the purposes of loss relief under CTA 2010, s 37 (formerly ICTA 1988, s 393A) and group relief under CTA 2010, Pt 5 (formerly ICTA 1988, s 403) as

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