»Ê¹ÚÌåÓýapp

Part 15A Corporation Tax Act 2009

Ìý

Finance Act 2013Ìý(Now incorporated into CTA 2009 Part 15A) introduced a new regime for the taxation of Television Production Companies (TPCs) and a new relief for the television industry, Television Tax Relief (TTR).

»Ê¹ÚÌåÓýapp legislation on TPCs provides specific rules for relief on television programmes including high-end television productions and animations. »Ê¹ÚÌåÓýapp rules state how all television production trades should be taxed, as well as laying down the conditions for TTR.

Tax treatment

For tax purposes only, the legislation:

• deems that the production of each programme is a separate trade with a start and end date separate to that of the company,
• describes what income and expenditure is eligible for additional tax relief and circumstances where there are exceptions to the normal rules for income and expenditure, and
• restricts the use of losses associated with that trade in certain circumstances.

This applies for all television production trades.

TTR applies to expenditure on relevant programmes by a TPC (TPC10110). Animations are relevant programmes. »Ê¹ÚÌåÓýappre are some specific rules related to animations.

If there is no TPC for a programme, then the rules do not apply. This might be because:

• no company meets the required criteria, or
• the company has elected to be treated as not meeting the criteria.

Television Tax Relief (TTR)

TTR applies to TPCs engaged in the making of:

• a British programme (TPC40030),
• that is intended for broadcast (TPC40020), and
• at least 25% of core expenditure (TPC50010) is incurred on goods or services used or consumed in the United Kingdom. ÌýFrom 1 April 2015 this reduces to 10% for programmes which had not completed principal photography by that dateÌý(TPC50050).

Those TPCs that are entitled to TTR can claim:

• an additional deduction in computing their taxable profits (TPC55010), and
• where that additional deduction results in a loss, to surrender losses for a payable tax credit (TPC55100).

Both the additional deduction and the payable credit are calculated on the basis of UK core expenditure up to a maximum of 80% of the total core expenditure by the TPC. Core expenditure is expenditure on pre-production, principal photography and post-production.

Commencement: TTR

TTR is available for expenditure that is used or consumed on or after 1 April 2013.