Corporation Tax Act 2009 section 1179DP

Meaning of "production company"

Section 1179DP defines which company qualifies as the "production company" for a film or television programme, distinguishing between standard productions and qualifying co-productions.

• For a standard (non-co-production) film or programme, the production company must be responsible for pre-production, principal photography, post-production and delivery, be actively engaged in production planning and decision-making, and directly negotiate, contract and pay for rights, goods and services — and must be more directly engaged in all of these activities than any other company meeting the same criteria.
• For a qualifying co-production, the production company must be a co-producer that makes an effective creative, technical and artistic contribution greater than that of any other co-producer that is (or would be) within the charge to UK corporation tax on income from the production.
• In both cases, only one company can be the production company for a given film or programme — the one that is the most directly engaged or makes the greatest contribution, as applicable.
• Any activities carried on through a partnership are disregarded when determining which company is the production company.