Corporation Tax Act 2009 section 1179BE

Treatment of certain capital amounts as revenue

Section 1179BE ensures that certain expenditure and receipts relating to a qualifying production, which would normally be treated as capital in nature, are instead treated as revenue items for corporation tax purposes within the separate production trade.

• Applies for corporation tax purposes to the separate production trade
• Expenditure on creating the qualifying production itself is treated as revenue, not capital, even though it results in the creation of an asset
• Receipts that count as income from the qualifying production are similarly treated as revenue, even if they would otherwise be capital in nature
• Other capital expenditure that does not relate to the creation of the qualifying production remains subject to the normal capital expenditure rules