Corporation Tax Act 2009 section 1202

Surrendering of loss and amount of film tax credit

Section 1202 allows a film production company to surrender some or all of its eligible trading loss in exchange for a payable film tax credit, and sets out how that credit is calculated.

• A company may claim a film tax credit by surrendering all or part of its surrenderable loss for an accounting period
• The film tax credit is calculated at 25% of the amount of loss surrendered
• A higher rate of payable credit applies where the film qualifies as a limited-budget film
• The company's available trading loss for the period is reduced by the amount of loss surrendered for the credit