(1)This section applies if—
(a)an individual makes a film-related loss (see section 800) in a trade for which the individual claims sideways relief or capital gains relief (a “relevant claim”),
(b)there is a disposal of a right of the individual to profits arising from the trade (a “relevant disposal”) (see section 799), and
(c)an exit event occurs.
(2)An exit event occurs whenever—
(a)the individual receives any non-taxable consideration (see section 798) for a relevant disposal, or
(b)an increase in the individual's claimed film-related losses (see section 800) or a decrease in the individual's capital contribution (see section 801) results in—
(i)those losses becoming greater than that contribution, or
(ii)an increase in the amount by which those losses exceed that contribution.
(3)The individual is treated as receiving an amount of income every time a chargeable event occurs.
The income is treated as arising otherwise than as profits of the trade.
(4)A chargeable event occurs whenever—
(a)the individual makes a relevant claim (if by that time a relevant disposal and an exit event have occurred),
(b)a relevant disposal occurs (if by that time an exit event has occurred and the individual has made a relevant claim), or
(c)an exit event occurs (if by that time a relevant disposal has occurred and the individual has made a relevant claim).
(5)The amount of income treated as received when a chargeable event occurs is equal to the sum of—
(a)the total amount or value of all non-taxable consideration received by the individual for relevant disposals, and
(b)the amount (if any) by which the individual's claimed film-related losses exceed the individual's capital contribution.
The calculation in this subsection is made immediately after the chargeable event occurs and is subject to section 803.
(6)For the purposes of this section it does not matter—
(a)if the individual (or anyone else) is still carrying on the trade when a chargeable event occurs, or
(b)if the individual receives both non-taxable and taxable consideration for a relevant disposal.