Corporation Tax Act 2009 section 1216CH

Television tax credit claimable if company has surrenderable loss

Section 1216CH sets out the conditions under which a television production company may claim a television tax credit, and how the surrenderable loss and available qualifying expenditure are calculated for that purpose.

• A television production company may claim a television tax credit for any accounting period in which it has a surrenderable loss, which is the lower of its trading loss and its available qualifying expenditure.
• The trading loss for the period is calculated by adding the company's loss for the current period to any relevant unused loss from the previous period — that is, any loss not already surrendered for tax credit or carried forward under general loss relief rules.
• For the first period of account of the separate programme trade, the available qualifying expenditure equals the total qualifying expenditure for that period; for subsequent periods, it is reduced by the total amounts already surrendered for television tax credit in earlier periods.
• Where the separate programme trade's period of account does not align with a corporation tax accounting period, the figures must be apportioned on a time basis according to the number of days in each period.