Commentary

D7.1233 Television production companies—calculation of profits and losses

Corporate tax
Corporate tax | Commentary

D7.1233 Television production companies—calculation of profits and losses

Corporate tax | Commentary

D7.1233 Television production companies—calculation of profits and losses

The production activities of a television production company in relation to a 'qualifying relevant programme'1 are treated as a separate trade of that company. The activities are separate from any other activities of the company, including any activities relating to another qualifying relevant programme2. Profits and losses are therefore calculated separately for each television programme that the company produces.

The trade begins on the earlier of the beginning of pre-production of the television programme and the receipt of any income from the relevant programme by the company3.

Development costs incurred by the company before it begins trading as a television production company are treated as expenditure of the trade incurred immediately after the company began to carry on that trade4. However, if the expenditure has already been relieved under another provision, the company must amend its tax return accordingly5. For this

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