(1)In Schedule 29 to FA 2002 (corporation tax: gains and losses from intangible fixed assets), for paragraph 80 (exclusion of films and sound recordings) substitute—
80A(1)This Schedule does not apply to an intangible fixed asset held by a film production company to the extent that it represents production expenditure on a film to which Schedule 4 of the Finance Act 2006 applies.
Expressions used in this sub-paragraph have the same meaning as in Chapter 3 of Part 3 of the Finance Act 2006.
(2)Except as regards royalties, this Schedule does not apply to an intangible fixed asset held by a company to the extent that it represents expenditure by the company—
(a)on the production of the original master version of a film that commenced principal photography before 1st April 2006;
(b)on the acquisition before 1st October 2007 of the original master version of a film that commenced principal photography before 1st April 2006.
(3)In sub-paragraph (2)—
(a)“film” has the same meaning as in Chapter 3 Part 3 of the Finance Act 2006;
(b)“original master version” means the original negative, tape or disc;
(c)references to the original master version of a film include the original master version of the film soundtrack (if any);
(d)references to the original master version include any rights in the original master version that are held or acquired with it.
80B(1)Except as regards royalties, this Schedule does not apply to an intangible fixed asset held by a company to the extent that it represents expenditure by the company on the production or acquisition of the master version of a sound recording.
(2)For this purpose—
(a)“sound recording” does not include a film soundtrack;
(b)“master version” means master tape or master audio disc of the recording;
(c)references to the master version include any rights in the master version that are held or acquired with it.”.
(2)In determining for the purposes of that Schedule whether an asset representing production expenditure on a film was created before or after 1st April 2002, the asset shall be treated as created when the film was completed.