F1PART 8BTrading profits taxable at the Northern Ireland rate

CHAPTER 11Film tax relief

Film losses

357RFRestriction on use of losses while film is in production

(1)

Section 1209 of CTA 2009 (restriction on use of losses while film is in production) has effect subject as follows.

(2)

The reference in subsection (1) of that section to a loss made in the separate film trade in a pre-completion period is, if the company is a Northern Ireland company in that period, a reference to—

(a)

any Northern Ireland losses of the trade of the period, or

(b)

any mainstream losses of the trade of the period;

and references to losses in F2subsections (2) and (3) of that section are to be read accordingly.

(3)

Subsection (4) applies if a Northern Ireland company has, in a pre-completion period—

(a)

both Northern Ireland losses of the trade and mainstream profits of the trade, or

(b)

both mainstream losses of the trade and Northern Ireland profits of the trade.

(4)

The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).

(5)

But relief on such a claim is available only—

(a)

in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;

(b)

in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.

(6)

In this section “a pre-completion period” has the same meaning as in section 1209 of CTA 2009 (see section 1208(2) of that Act).