The following Corporation Tax guidance note Produced by Tolley in association with Richard Palmer 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. The legislation has two parts, firstly, legislation that applies to all companies regarding the recognition of income and costs and the treatment of losses, and a second part that provides for a repayable tax credit to the company where a qualifying film is produced. For details of the film tax credit, see the Film production company tax credits guidance note. Film production companies have their own HMRC tax manual, ‘Film Production Companies’ (FPC). Finance Act 2013 introduced a separate tax regime for companies producing television and animation programmes. See the Television tax reliefs ― key provisions guidance note for further details.
A film is defined in CTA 2009, s 1181 as being “a sequence of visual images that is capable of being used as a means of showing that sequence as a moving picture”. It includes images generated by computer and the soundtrack. It does not need to be a UK film.
Where the film production is a series, it will be treated as a single film provided it constitutes a self-contained work or a series of documentaries with a common theme, there are no more than 26 parts and the playing time is no more than 26 hours.
To qualify as an FPC under CTA 2009, s 1182, the FPC must:
be responsible for the pre-production, principal photography and the post production of the film as well as for delivery of the completed film
be actively engaged in production planning and decision-making during the work
directly negotiate, contract and pay for rights, goods and services in relation to the film
As there can only be one qualifying FPC in respect of a film, careful consideration should be given to ensuring that the FPC fulfils all the requirements above and that no other company is involved in an area
**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
Legislative definition of plant and machineryThe general rule allowing capital allowances on plant and machinery is given at CAA 2001, s 11. There is no statutory definition of the term ‘plant and machinery’ but there is confirmation in the legislation on what constitutes a building or a structure
IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere
This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees
Statutory sick pay (SSP)Statutory sick pay has its origins in the Social Security and Housing Benefits Act 1982, Part 1. Various amendments have been made to this Act to give us the SSP system we now operate.Temporary changes to SSP for coronavirus (COVID-19)New legislation has been put in place in