Corporation Tax Act 2009 section 1179DX

Costs and income of separate trade

Section 1179DX defines what counts as costs and what counts as income when calculating the profits of the separate trade for a film or television programme.

• Expenditure on production activities for the film or programme counts as costs of the separate trade
• Expenditure on activities aimed at exploiting the film or programme also counts as costs
• Income includes receipts from making or exploiting the film or programme, such as sales, royalties, merchandise rights and profit share payments
• The section applies specifically for the purpose of calculating profits of the separate trade under section 1179BB as it relates to films and television programmes

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