Corporation Tax Act 2009

[F1 The entitlement U.K.

Textual Amendments

F1 Pt. 14A inserted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 2 para. 1 (with Sch. 2 paras. 16(1), 17-25)

1179C Entitlement to expenditure credit U.K.

(1) The qualifying company for a qualifying production is entitled to an expenditure credit for—

(a) the opt-in period, and

(b) (subject to subsection (2)) any subsequent accounting period in which it continues to carry on the separate production trade.

(2) If in any of those subsequent periods the production is no longer a qualifying production, or the company is no longer the qualifying company for it, the company is not entitled to an expenditure credit for the period.

(3) But that does not affect the entitlement of the company for any subsequent period in which the production is once again a qualifying production or the company is once again the qualifying company for it.

(4) If a production ceases to be regarded as a qualifying production in an accounting period as a result of events after the end of that period—

(a) the qualifying company is no longer entitled to an expenditure credit for that period, and

(b) any company tax return drawn up in reliance on such an entitlement must be amended so as to remove anything derived from that entitlement.

(5) An expenditure credit to which a company is entitled may be claimed by the company in accordance with Part 9D of Schedule 18 to FA 1998.

1179CA Amount of expenditure credit U.K.

(1) The amount of the expenditure credit to which a qualifying company is entitled for an accounting period is determined as follows.

• Step 1

  Ascertain the total of the company’s relevant global expenditure (see subsection (2)) for all accounting periods up to and including the present one.

• Step 2

  Deduct from that total any expenditure that is not UK expenditure (see section 1179AB).

• Step 3

  If the amount remaining after step 2 exceeds 80% of the total ascertained at step 1, deduct the amount of the excess.

  The remaining amount is the company’s “qualifying expenditure to date”.

• Step 4

  Deduct from the company’s qualifying expenditure to date the amount (if any) that was the company’s qualifying expenditure to date in the accounting period for which it was last entitled to, and claimed, an expenditure credit in respect of the qualifying production.

  The remaining amount is the company’s “qualifying expenditure for the period”.

• Step 5

  The amount of the credit to which the company is entitled is the relevant percentage of the company’s qualifying expenditure for the period.

  The relevant percentage is determined by—

  (a)

  section 1179DV, in the case of a film or television programme;

  (b)

  section 1179FN, in the case of a video game.

(2) Expenditure is “relevant global expenditure” for an accounting period if—

(a) it is brought into account under section 1179BB in calculating the profits of the separate production trade for that period, and

(b) it counts as relevant production expenditure in relation to the qualifying production under—

(i) section 1179DR, in the case of a film or television programme;

(ii) section 1179FJ, in the case of a video game.]