Corporation Tax Act 2009 section 150

Revenue nature of expenditure

Section 150 provides that expenditure on producing or acquiring the original master version of a sound recording is treated as revenue expenditure for corporation tax purposes, and that any receipts from its disposal are similarly treated as revenue.

• Expenditure by a company on producing or acquiring the original master version of a sound recording is treated as revenue in nature, not capital
• Any sums received from disposing of the original master version are also treated as revenue receipts
• Disposal receipts include sums from selling any interest or right in the master version, as well as insurance or compensation payments relating to it
• Revenue receipts from disposal are brought into account when calculating profits for the period in which they are received