Corporation Tax Act 2009 section 1216CI

Surrendering of loss and amount of television tax credit

Section 1216CI deals with how a television production company can surrender its available trading loss in exchange for a payable television tax credit.

• A company may surrender all or part of its surrenderable loss for an accounting period
• The television tax credit is calculated at 25% of the amount of loss surrendered
• Where only part of the loss is surrendered, the company's available loss is reduced by the surrendered amount
• The mechanism converts an otherwise unusable trading loss into a cash payment from HMRC