What does section 1212 of the Corporation Tax Act 2009 do?

Section 1212 defines the key terms used throughout the film tax relief chapter, including the company, the completion period, interim accounting period, interim and final certificates, the separate film trade, and special film relief. It also requires the film production company to state in its tax return whether the film has been completed or abandoned.

What does 'special film relief' mean under section 1212 CTA 2009?

Special film relief is a broad term encompassing two distinct forms of relief. The first is film tax relief, which applies where the film satisfies qualification requirements. The second is the transfer of terminal losses, which applies where both the original film and the film to which the loss is transferred satisfy those same qualification requirements.

What must a film production company state in its tax return under section 1212?

The film production company must include a statement in the appropriate company tax return indicating whether the film has been completed or whether production has been abandoned. This statement determines whether the return relates to an interim period or the completion period, affecting the type of claim and the certificate required.

What is the difference between an interim accounting period and a completion period for film tax relief?

An interim accounting period is any accounting period before the film is completed or abandoned, during which an interim certificate supports claims. The completion period is the accounting period in which the film is completed or abandoned, requiring a final certificate. The distinction determines which type of certificate and claim the company must use.

Corporation Tax Act 2009 section 1212

Introduction

Section 1212 defines the key terms used throughout the chapter dealing with film tax relief claims and requires the film production company to state in its tax return whether the film has been completed or abandoned.

The section establishes definitions for essential terms including "the company", "the completion period", "interim accounting period", "interim certificate", "final certificate", "the separate film trade", and "special film relief".
The film production company must state in the relevant company tax return whether the film has been completed or whether it has abandoned production.
"Special film relief" is a broad term covering both film tax relief (where the film meets the requirements for qualification) and the transfer of terminal losses (where both films involved must meet those qualification requirements).
These definitions and requirements provide the framework for all subsequent provisions in the chapter governing how film production companies claim relief through their tax returns.

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