What does section 1179D of the Corporation Tax Act 2009 do?

Section 1179D acts as a bridge between the general rules in Chapters 2 and 3 of Part 14A and the specific provisions for film and television. It confirms that a qualifying film or qualifying television programme counts as a 'qualifying production' and that the production company is the 'qualifying company' for the purposes of those general rules.

What is an audiovisual expenditure credit under United Kingdom corporation tax law?

An audiovisual expenditure credit is the specific term given to an expenditure credit claimed under Chapter 3 of Part 14A when it arises in respect of a qualifying film or qualifying television programme. This distinguishes it from the equivalent credit available for video games, which is called a 'video games expenditure credit'.

Who is the qualifying company for a film or television programme under section 1179D?

Under section 1179D, the production company responsible for a qualifying film or qualifying television programme is treated as the 'qualifying company'. This is the entity entitled to benefit from the tax relief. The detailed definition of 'production company' is set out in later sections of Chapter 4 of Part 14A.

How does Part 14A of the Corporation Tax Act 2009 apply to films and television programmes?

Part 14A provides a framework of tax relief for creative industry productions. Chapters 2 and 3 set out general rules on taxable profits and expenditure credits. Section 1179D confirms these general rules apply to qualifying films and television programmes, while Chapter 4 provides further detailed rules specific to those productions.

Corporation Tax Act 2009 section 1179D

Application of Chapters 2 and 3 to films and television programmes

Section 1179D explains how the general rules in Chapters 2 and 3 of Part 14A apply specifically to qualifying films and qualifying television programmes, and introduces the term "audiovisual expenditure credit".

A qualifying film or qualifying television programme is treated as a "qualifying production" for the purposes of Part 14A.
The production company for a qualifying film or television programme is treated as the "qualifying company" for that film or programme.
The remaining provisions of Chapter 4 set out further detailed rules that apply specifically to films and television programmes.
Where a company becomes entitled to an expenditure credit under Chapter 3 in respect of a film or television programme, that credit is known as an "audiovisual expenditure credit".

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