Corporation Tax Act 2009 section 1191

Costs of the film

Section 1191 defines what counts as "costs of the film" for the purposes of the film tax relief rules, including which expenses qualify and how they are treated for tax purposes.

• The costs of a film include all expenses connected with the film-making process or with efforts to exploit the film commercially
• There may be restrictions on how much of these costs can be deducted when calculating taxable profits
• Expenditure on creating the film itself is not treated as capital expenditure merely because it results in the creation of an asset
• Expenditure that would be capital in nature regardless of the film's creation — such as spending on plant and machinery — remains capital expenditure