Corporation Tax Act 2009 section 1198

UK expenditure

Section 1198 sets out the minimum percentage of core expenditure on a film that must be UK expenditure, and gives the Treasury the power to change that percentage.

• At least 10% of core expenditure on a British film must be UK expenditure incurred by the film production company.
• For a qualifying co-production, the 10% minimum applies to the core expenditure incurred by the co-producers collectively.
• UK expenditure means expenditure on goods or services that are used or performed in the United Kingdom.
• The Treasury has the power to amend the 10% minimum percentage by statutory instrument.