Corporation Tax Act 2009 section 1199

Additional deduction for qualifying expenditure

Section 1199 allows a company entitled to film tax relief to claim an additional trading deduction in respect of its core expenditure on a film, and gives the Treasury powers in relation to such additional deductions.

• A company eligible for film tax relief may claim an extra deduction on top of its normal allowable expenses for the film trade.
• The additional deduction is based on the film's "qualifying expenditure," which means the core costs of the film that are already taken into account in calculating the trade's profit or loss for tax purposes.
• The extra deduction is factored into the overall profit or loss calculation for the separate film trade.
• The Treasury has powers to make provisions in relation to how these additional deductions operate.