Corporation Tax Act 2009 section 886

Assets representing production expenditure on films: time of creation

Section 886 provides a special rule for determining when an asset representing production expenditure on a film is treated as having been created, for the purposes of the intangible fixed assets regime.

• An asset representing production expenditure on a film is treated as created when the film is completed, not when the expenditure is incurred
• This rule is relevant for determining whether the asset was created before or on or after 1 April 2002
• The 1 April 2002 date is significant because it determines whether the asset falls within the intangible fixed assets regime in Part 8 of the Act
• The terms "completed", "film", and "production expenditure" all take their meanings from the film production rules in Part 15 of the Corporation Tax Act 2009