Corporation Tax Act 2009 section 1200

Amount of additional deduction

Section 1200 sets out how to calculate the amount of the additional tax deduction that a film production company can claim for qualifying expenditure.

• The additional deduction is calculated by multiplying qualifying expenditure (E) by an enhancement rate (R) of 100%
• Qualifying expenditure (E) is the lower of UK qualifying expenditure or 80% of total qualifying expenditure
• In subsequent periods, any additional deductions already claimed in earlier periods are subtracted from the calculated amount
• The Treasury has the power to alter the enhancement rate percentages by statutory instrument