Corporation Tax Act 2009 section 1203

Payment in respect of film tax credit

Section 1203 deals with how HMRC pays out film tax credits to eligible companies and the conditions that may delay or prevent such payments.

• HMRC must pay the film tax credit to a company that is eligible and has made a claim, and the credit can be set against any corporation tax the company owes.
• Where a company's tax return is under enquiry, HMRC may make the payment on a provisional basis.
• No payment is required until the company has met its obligations for PAYE, visiting performer deductions, and Class 1 National Insurance contributions.
• Any payment received as a film tax credit does not count as taxable income of the company.