Corporation Tax Act 2009 section 1204

No account to be taken of amount if unpaid

Section 1204 requires that costs which remain unpaid more than four months after the end of an accounting period are disregarded when calculating film production costs for the purposes of claiming additional trading deductions or surrendering trading losses.

• Any film production costs that remain unpaid more than four months after the end of the relevant accounting period must be ignored when calculating costs for this chapter
• This restriction applies specifically when determining eligibility for additional trading deductions or the surrender of trading losses for payment
• This unpaid costs rule operates as an additional restriction on top of the separate rules in section 1192, which govern when costs are treated as incurred for calculating the profit or loss of the single film trade
• The operation of section 1192 itself is not affected by this provision — the two restrictions work independently of each other