Part 3Income tax, corporation tax and capital gains tax
C1Chapter 3Films and sound recordings
Corporation tax treatment of sound recordings
48Sound recordings: revenue nature of expenditure
1
If a company carrying on a trade incurs expenditure on the production or acquisition of the original master version of a sound recording, the expenditure is treated for corporation tax purposes as expenditure of a revenue nature.
2
If expenditure is treated under this section as revenue in nature, sums received by the company from the disposal of the original master version of the sound recording—
a
are treated for corporation tax purposes as receipts of a revenue nature, and
b
are brought into account in calculating the profits of the relevant period in which they are received.
3
For this purpose sums received from the disposal of the original master version include—
a
sums received from the disposal of any interest or right in or over the original master version (including an interest or right created by the disposal), and
b
insurance, compensation or similar money derived from the original master version.
Pt. 3 Ch. 3 applied (with modifications) (29.3.2007) by The Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050), reg. 3-12 (with effect reg. 1(2)) (as amended by Corporation Tax Act 2009 (c. 4), Sch. 2 para. 131)