Corporation Tax Act 2009 section 1179DO

UK expenditure condition: provisional and final satisfaction

Section 1179DO sets out how a film or television programme meets the UK expenditure condition, both provisionally during production and finally upon completion, and explains the consequences if the condition ceases to be met.

• At least 10% of total core expenditure on a film or television programme must be, or be expected to be, UK expenditure in order to meet the UK expenditure condition.
• During pre-completion periods the condition is met provisionally, based on expected expenditure figures stated in the company tax return; upon completion it is met finally, based on actual expenditure figures.
• If the condition is not met in any pre-completion period or in the completion period, it is treated as never having been met in earlier periods, meaning the production loses its qualifying status retrospectively.
• The Treasury has the power to amend the 10% threshold by regulations.