Corporation Tax Act 2009 section 1210

Use of losses in later periods

Section 1210 explains how trade losses from a single film trade are handled once the film is completed or abandoned, including restrictions on losses attributable to film tax relief.

• Losses carried forward to the completion period (or later) can be treated as losses of that period, freeing them from earlier restrictions — but not if they are attributable to film tax relief or arise from terminal loss provisions
• Losses arising in periods after completion that are attributable to film tax relief cannot be set against other profits, carried back, carried forward, or surrendered as group relief
• Any additional deductions arising from film tax relief do not count towards the general restriction on deductions from trading profits
• The portion of a loss attributable to film tax relief is the difference between the actual loss and what the loss would have been without any film tax relief additional deductions in that or earlier periods