The Corporation Tax (Certification as Low-Budget Film) Regulations 2024

Regulation 4(2)(a)

Schedule Particulars and Evidence

Part 1 Budget condition

1.  The particulars prescribed in this Schedule in relation to the budget condition are—

(a) the total core expenditure in relation to the film, and

(b) the total expenditure in relation to the film which is not core expenditure.

2.  The evidence prescribed in this Schedule in relation to the budget condition is a document setting out the total expenditure in relation to the film, broken down by category of expenditure (for example, equipment, location, wardrobe).

3.  The figures provided under paragraphs 1 and 2 must be accurate—

(a) in relation to interim certification(1), on a date within the period of three months ending with the date of the application;

(b) in relation to final certification, on the date the film is completed.

4.  For the purposes of paragraph 3(b), a film is completed at the time when it is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public.

5.  In this Part, “ total expenditure”, in relation to a film, means the total of the expenditure incurred and anticipated to be incurred in relation to the film.

Part 2 Creative connection condition

6.  The particulars prescribed in this Schedule in relation to the creative connection condition are—

(a) the name of the person (“P”) by reference to whom the test in section 1179DJA(4)(a) of the Corporation Tax 2009 is claimed to be met,

(b) P’s role in relation to the film,

(c) P’s nationality or (as the case may be) ordinary residence,

(d) in a case where P is a director in relation to the film and there is one or more other directors, the reasons why P should be considered to be a lead director for the purposes of regulation 3, and

(e) in a case where P is a scriptwriter in relation to the film and there is one or more other scriptwriters, the reasons why P should be considered to be a lead scriptwriter for the purposes of regulation 3.

7.  The evidence prescribed in this Schedule in relation to the creative connection condition is—

(a) the contract of employment between the person mentioned in paragraph 6(a) (“P”) and the production company,

(b) in a case where P is a director in relation to the film and there is one or more other directors, the contract of employment between the production company and each other director, and

(c) in a case where P is a scriptwriter in relation to the film and there is one or more other scriptwriters—

(i) the contract of employment between the production company and each other scriptwriter, and

(ii) the chain of title.

8.  In this Part, “ chain of title”, in relation to a film, means the series of written documents establishing proprietary rights in the film.

(1)

Section 1179DJA(1) of the Corporation Tax Act 2009 sets out the circumstances in which a certificate granted in relation to a film under Schedule 1 to the Films Act 1985 (c. 21) (“the 1985 Act”) must, in addition to certifying that the film is or will be a British film, certify the film as a low-budget film. Under paragraph 2(2) of Schedule 1 to the 1985 Act, an application for certification as a British film may be for an interim or final certificate. The terms “interim certificate” and “final certificate” are defined in paragraph 2(3) and (4) of Schedule 1 to the 1985 Act respectively.