Corporation Tax Act 2009 section 1218ZBE

Pre-trading expenditure

Section 1218ZBE deals with how expenditure incurred before a production company formally begins its separate exhibition trade can be brought into that trade for tax purposes.

• Expenditure on qualifying exhibition production activities incurred before the separate exhibition trade begins may be treated as expenditure of that trade.
• Such pre-trading expenditure is treated as if it were incurred immediately after the trade commenced.
• If the expenditure has already been used for other tax purposes, the company must amend its relevant tax returns accordingly.
• Any necessary amendments or assessments to correct earlier tax returns can be made even if normal time limits have expired.