This section applies if, before the company began to carry on the separate film trade, it incurred expenditure on development of the film.

The expenditure may be treated as expenditure of the separate film trade and as if incurred immediately after the company began to carry on that trade.

If expenditure so treated has previously been taken into account for other tax purposes, the company must amend any relevant company tax return accordingly.

Any amendment or assessment necessary to give effect to subsection (3) may be made despite any limitation on the time within which an amendment or assessment may normally be made.