Corporation Tax Act 2009 section 1216BC

Costs of the relevant programme

Section 1216BC defines what counts as the costs of a relevant television programme for the purposes of the television production company tax relief rules.

• The costs of the relevant programme are the expenditure incurred by the company on TV production activities or on exploiting the programme
• Costs are recognised when they are actually incurred, but any expenditure that is prohibited or limited under the Corporation Taxes Acts is excluded
• Where the programme is treated as a capital asset in the company's hands, expenditure that would otherwise be disallowed as capital in nature is instead treated as revenue expenditure
• This revenue treatment ensures that production costs are fully deductible within the relief framework, even though the programme itself may be a capital asset