»Ê¹ÚÌåÓýapp

CTA2009/Part 15 Chapter 2 S1188 to S1194

Where a company is a film production company (FPC) (FPC10110) for the purposes of the film tax regime introduced by FA06 (legislation now in CTA 2009), the production of each film is treated as a separate trade. This means that profits and losses should be calculated separately for each film, and the rules applying to a trade should be applied to each film.

In producing their statutory accounts, film production companies (FPCs) may account for their costs and income in a number of ways depending on their operating model and the way they think best represents their activities to their shareholders.

CTA2009/Part 15 Chapter 2 therefore sets out a consistent approach to calculating taxable profits of FPCs.

This approach is important when considering relief for any losses. »Ê¹ÚÌåÓýappre are special provisions which restrict the ways in which losses arising from a trade of producing a film can be used and this will vary depending on whether or not the film has been completed and the trade has ceased (FPC20110).

»Ê¹ÚÌåÓýapp CTA2009/Part 15 Chapter 2 basis, like the treatment it replaces (F2A92/S40A and F2A92/S40B), applies a revenue treatment to income and to certain types of expenditure that would otherwise be treated as capital expenditure (FPC20200).

»Ê¹ÚÌåÓýapp definition of a film can link a number of parts of a self-contained work and treat them as a single film (FPC10100). (See FPC20130 for further detail of how this applies in relation to television programmes.)