Income Tax Act 2007

[F174DMeaning of “qualifying film expenditure” for purposes of sections [F274ZA and 74A] U.K.
This section has no associated Explanatory Notes

(1)For the purposes of sections [F374ZA and 74A] expenditure is qualifying film expenditure if—

(a)it is deducted under a relevant film provision for the purposes of calculating the profits of a trade, or

(b)it is incidental expenditure which (although not deducted under a relevant film provision) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is so deducted.

(2)Expenditure is incidental if it is on management, administration or obtaining finance.

(3)The extent to which expenditure is within subsection (1)(b) is determined on a just and reasonable basis.

(4)For the purposes of sections [F474ZA and 74A] the amount of any loss that derives from qualifying film expenditure is determined on a just and reasonable basis.

(5)In this section—

  • “the acquisition of the original master version of a film” has the same meaning as in Chapter 9 of Part 2 of ITTOIA 2005 (see sections 130 and 132 of that Act),

  • “film” is to be read in accordance with paragraph 1 of Schedule 1 to the Films Act 1985, and

  • “a relevant film provision” means any one of sections 137 to 140 of ITTOIA 2005 (relief for certified master versions of films).]

Textual Amendments

F1Ss. 74A-74D and cross-heading inserted (21.7.2008 with effect in accordance with Sch. 21 paras. 6, 7 of the amending Act) by Finance Act 2008 (c. 9), Sch. 21 para. 2

F2Words in s. 74D heading substituted (8.4.2010 with effect in accordance with Sch. 3 para. 11 of the amending Act) by Finance Act 2010 (c. 13), Sch. 3 para. 8(3)

F3Words in s. 74D(1) substituted (8.4.2010 with effect in accordance with Sch. 3 para. 11 of the amending Act) by Finance Act 2010 (c. 13), Sch. 3 para. 8(2)

F4Words in s. 74D(4) substituted (8.4.2010 with effect in accordance with Sch. 3 para. 11 of the amending Act) by Finance Act 2010 (c. 13), Sch. 3 para. 8(2)

Modifications etc. (not altering text)

C1Ss. 74B-74D applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 1(11)(b)

C2Ss. 74ZA-74D applied (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 3(1)(b)