Corporation Tax Act 2009 section 1201

Film tax credit claimable if company has surrenderable loss

Section 1201 explains how a film production company that is entitled to film tax relief can claim a film tax credit by surrendering a trading loss, and how the amount of that surrenderable loss is calculated.

• A company can claim a film tax credit if it has a surrenderable loss in the separate film trade for the accounting period in question.
• The surrenderable loss is the lower of two amounts: the available loss in the separate film trade, or the available qualifying expenditure for the period.
• The available loss is the company's current-period trading loss in the separate film trade plus any unused losses carried forward from earlier accounting periods.
• The available qualifying expenditure starts as the amount "E" used in the additional deduction calculation under section 1200(1), and is reduced in later periods by amounts previously surrendered.