Finance Act 2024

CTA 2010 U.K.

6 (1) CTA 2010 is amended as follows.

(2) In section 45A(3) (conditions for carrying forward trade loss against total profits), in paragraph (b)(ii), after “section” insert “1179BF,”.

(3) In Part 8A (profits from exploiting patents etc)—

(a) in section 357BJB (deductions that are not routine deductions in calculating relevant IP profits)—

(i) in subsection (1), after paragraph (d) insert—

“(da) subsection (7A) (expenditure on the production of films, television programmes and video games),”;

(ii) after subsection (7) insert—

“(7A) Head 4A is the amount of any expenditure in respect of which the company is entitled to an audiovisual expenditure credit or video game expenditure credit under Part 14A of CTA 2009.”;

(b) in section 357CG (adjustments in calculating relevant IP profits), in subsection (4), after paragraph (a) (but not the following “and”) insert—

“(aa) the amount of any audiovisual expenditure credit or video game expenditure credit under Part 14A of CTA 2009 brought into account in calculating the profits of the trade for the accounting period,”.

(4) In Part 8B (profits taxable at Northern Ireland rate), after Chapter 10 insert—

“Chapter 10A U.K. Films, television programmes and video games qualifying for expenditure credit

Introduction U.K.

357QE Application and interpretation

(1) This Chapter makes provision about the interaction between this Part and Part 14A of CTA 2009 (films, television programmes and video games).

(2) This Chapter applies if—

(a) a company is a Northern Ireland company in an accounting period,

(b) the company is treated under Part 14A of CTA 2009 as carrying on a separate trade in that period (see 1179B of that Act), and

(c) that trade is a qualifying trade.

(3) References in this Chapter to “the Northern Ireland company”, “the accounting period” and “the separate trade” are to be read accordingly.

Expenditure credit U.K.

357QF Expenditure credit to count towards mainstream profits or losses

(1) Subsection (2) applies if, under section 1179CB of CTA 2009 (expenditure credit under Part 14A of CTA 2009 to be taxable receipt), the Northern Ireland company brings an amount of audiovisual expenditure credit or video game expenditure credit into account in calculating the profits of the separate trade for the accounting period.

(2) The amount is to form part of the mainstream profits or mainstream losses of the trade for that period.

Losses of separate trade U.K.

357QG Carrying forward of production losses

(1) If the accounting period is a pre-completion period within the meaning of section 1179BF of CTA 2009 (carrying forward of production losses in separate trade), that section applies in relation to the separate trade and that accounting period subject to the following provisions.

(2) In subsection (1) of that section, the reference to a loss is to be read as a reference to—

(a) any Northern Ireland losses, or

(b) any mainstream losses;

and the rest of that section is to be read accordingly.

(3) Subsection (4) applies if the Northern Ireland company has in the accounting period—

(a) both Northern Ireland losses of the separate trade and mainstream profits of that trade, or

(b) both mainstream losses of the separate trade and Northern Ireland profits of that trade.

(4) The company may, despite section 1179BF(2) of CTA 2009, claim under section 37 (relief for trade losses against total profits) for—

(a) relief for those Northern Ireland losses against those mainstream profits, or

(b) relief for those mainstream losses against those Northern Ireland profits.

357QH Transfer of terminal loss

(1) Subsection (2) applies if—

(a) the Northern Ireland company ceases to carry on the separate trade in the accounting period,

(b) as a result, section 1179BG of CTA 2009 (transfer of terminal loss in separate production trade to other production or group company) applies, and

(c) the amount in respect of which it applies (see subsection (1)(b) of that section) represents a Northern Ireland loss.

(2) The references to a loss in subsections (2) and (3)(b) of that section are to be read as references to a Northern Ireland loss.”