Chapter 3U.K.Films and sound recordings: non-trade businesses
609Charge to tax on films and sound recordings businessesU.K.
(1)Income tax is charged on income from a business involving the exploitation of films or sound recordings where the activities carried on do not amount to a trade.
Such a business is referred to in this Chapter as a “non-trade business”.
(2)Expressions which are used in this Chapter and in Chapter 9 of Part 2 (trade profits: films and sound recordings) have the same meaning in this Chapter as they do in that Chapter.
610 Income chargedU.K.
(1)Tax is charged under this Chapter on the full amount of the income arising in the tax year.
(2)See sections 612 and 613 for provision about the calculation of the amount of income charged under this Chapter.
(3)This section is subject to Part 8 (foreign income: special rules).
611Person liableU.K.
The person liable for any tax charged under this Chapter is the person receiving or entitled to the income.
612Calculation of incomeU.K.
(1)This section applies for calculating the amount of income charged under this Chapter.
(2)Expenses wholly and exclusively incurred for the purpose of generating the income are deductible.
(3)If an expense is incurred for more than one purpose, a deduction may be made for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purpose of generating the income.
(4)Expenses which would not have been allowable as a deduction in calculating the profits of a trade, if they had been incurred for its purposes, are not deductible under this section.
(5)Expenses for which any kind of relief is given under any other provision of the Income Tax Acts are not deductible under this section.
(6)Any relief given as a result of section 613 is additional to the relief under this section.
613Application of trading income rules to non-trade businessesU.K.
The provisions of Chapter 9 of Part 2 apply in relation to non-trade businesses as they apply in relation to trades but as if—
(a)references to a basis period were to a tax year, and
(b)references to anything not constituting trading stock of a trade were omitted.