Income Tax Act 2007 (c. 3)

Part 4 U.K. Loss relief

Chapter 3 U.K. Restrictions on trade loss relief for certain partners

[F1 Limit on amount of sideways relief and capital gains relief] U.K.

Textual Amendments

F1 S. 103C and cross-heading inserted (with effect in accordance with Sch. 4 para. 1(2)-(13) of the amending Act) by Finance Act 2007 (c. 11), Sch. 4 para. 1(1)

[F2 103D Meaning of “qualifying film expenditure” U.K.

(1) For the purposes of this Chapter expenditure is qualifying film expenditure if—

(a) it is deducted under a relevant film provision for the purposes of the calculation required by section 849 of ITTOIA 2005 (calculation of firm's profits or losses), or

(b) it is incidental expenditure which (although not deducted under a relevant film provision) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is so deducted.

(2) Expenditure is incidental if it is on management, administration or obtaining finance.

(3) The extent to which expenditure is within subsection (1)(b) is determined on a just and reasonable basis.

(4) For the purposes of this Chapter the amount of any loss that derives from qualifying film expenditure is determined on a just and reasonable basis.

(5) In this section—

• “ the acquisition of the original master version of a film ” has the same meaning as in Chapter 9 of Part 2 of ITTOIA 2005 (see sections 130 and 132 of that Act),

• “ film ” is to be read in accordance with paragraph 1 of Schedule 1 to the Films Act 1985, and

• “ a relevant film provision ” means any one of sections 137 to 140 of ITTOIA 2005 (relief for certified master versions of films). ]

Textual Amendments

F2 S. 103D inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 4 paras. 9, 21