Corporation Tax Act 2009 section 1190

Income from the film

Section 1190 defines what counts as "income from the film" for the purposes of the film tax relief rules, adopting a broad definition that captures all receipts connected with the exploitation of the film.

• Income from the film includes any money the company receives from making, selling or otherwise exploiting the film
• Royalties, licence fees, profit share payments and merchandise income all fall within the definition
• Payments for the use of any aspect of the film — such as characters, music or other creative elements — are included
• Capital receipts are re-characterised as revenue, so proceeds from outright sale of the film or rights in it are treated as income