Corporation Tax Act 2009 section 1217IE

Pre-trading expenditure

Section 1217IE sets out how expenditure incurred before a theatrical production company begins trading can be brought into account as expenditure of the separate theatrical trade.

• Expenditure incurred on production costs before the separate theatrical trade begins can be treated as expenditure of that trade
• Such expenditure is treated as if it were incurred immediately after the company starts carrying on the separate theatrical trade
• If the expenditure has already been claimed for other tax purposes, the company must amend the relevant corporation tax returns to reflect the change
• Any amendments or assessments needed to correct earlier tax returns can be made even if the normal time limits for making such changes have expired