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64(1)Section 376 (films) does not apply if the inception of the long funding lease is before 13 November 2008.U.K.
(2)Sub-paragraphs (3) to (10) apply in respect of a long funding finance lease of a film—
(a)whose inception is before that date, and
(b)which has not terminated before that date.
(3)Section 360 (lessor under long funding finance lease: rental earnings) does not apply to a period of account within sub-paragraph (4).
(4)A period of account is within this sub-paragraph if—
(a)it begins on or after 13 November 2008, and
(b)no rentals due (wholly or partly) in respect of any part of the period of account were due under the lease before that date.
(5)For the purpose of calculating the profits of the lessor under the lease for a period of account that—
(a)ends on or after 13 November 2008, and
(b)is not within sub-paragraph (4),
the lessor is treated as receiving for that period of account income attributable to the lease of an amount equal to the relevant amount (in addition to any amount brought into account under section 360(2)).
[(6)The relevant amount is an amount equal to so much of the rentals that—
(a)become due on or after 13 November 2008, and
(b)are due wholly or partly in respect of the period of account,
as would not reasonably be regarded as reflected in the rental earnings for that period of account.]
(7)If any rental is paid for a period (“the rental period”) that—
(a)begins before 13 November 2008, or
(b)is not wholly within the period of account,
for the purposes of sub-paragraph (6) the amount of that rental is treated as equal to the amount apportioned (on a time basis) in respect of so much of the rental period as falls on or after 13 November 2008 and within the period of account.
(8)Section 361 (lessor under long funding finance lease: exceptional items) does not apply to any profit or loss arising on or after 13 November 2008.
(9)If section 362 (lessor making termination payment) applies in respect of the termination of the lease on or after 13 November 2008, a deduction is allowed (in calculating the profits of the lessor) in respect of any sum calculated by reference to the termination value paid to the lessee.
(10)The amount of the deduction is (if it would otherwise exceed that amount) limited to the total amount brought into account in respect of the lease as a result of sub-paragraph (3) or sub-paragraphs (5) to (7).
(11)For the purposes of this paragraph—
(a)“film” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act),
(b)the amount of the rental earnings for a period of account is determined in accordance with section 360(3) and (4), and
(c)Chapter 6A of Part 2 of CAA 2001 (interpretation of provisions about long funding leases) applies (see section 70YI(1), in particular, for the meaning of “inception”).