The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Finance Act 1996 introduced a special regime for film production companies, now included in CTA 2009, ss 1188–1216. In addition, the legislation provides for qualifying films to receive an additional tax deduction in respect on the production company's expenditure on production of a film. This enhancement is up to 80% of qualifying expenditure on the film production.
This additional deduction can be set off against future taxable profits or, if the company wants to, be surrendered in exchange for a payment to the company by HMRC. This payment is worth up to 20% of the film production costs. As indicated below, it will nearly always be beneficial to make the election and surrender the loss and receive the payment.
The purpose of the tax credit was to encourage the making of films by UK companies and to replace the previous discredited regime of relief under Finance Act (No 2) 1992, s 42 and Finance Act (No 2) 1997, s 48. These reliefs had sometimes resulted in tax relief for investors in artificial tax schemes.
Such has been the success of the new regime introduced by Finance Act 1996 that the legislation has been largely replicated in the new separate tax regimes for companies producing television, animation and most recently, children’s television programmes. See the Television tax reliefs ― key provisions guidance note for further details.
The tax legislation dealing with the additional deduction for corporation tax purposes follows on from the rules governing the taxation of film production companies. See the Taxation of Film Production Companies guidance note for details on the meaning of a FPC producing a qualifying film. The legislation is at CTA 2009, ss 1181–1182.
Note that the additional deduction applies to corporation tax only. For UK companies and non-resident companies with a permanent establishment in the UK, see the Residence of companies and the Permanent establishment guidance notes for further explanation.
Aside from being a qualifying FPC producing
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.