Corporation Tax Act 2010 section 357RD

Film tax credit: Northern Ireland supplementary deduction ignored

Section 357RD ensures that Northern Ireland supplementary deductions are excluded when calculating a company's available loss for the purposes of claiming film tax credits.

• When a film production company calculates its available loss for claiming film tax credits, any Northern Ireland supplementary deduction must be left out of the calculation.
• This exclusion applies to Northern Ireland supplementary deductions arising in the current accounting period.
• It also applies to any Northern Ireland supplementary deductions arising in previous accounting periods.
• The purpose is to prevent the enhanced Northern Ireland deduction from inflating the loss figure that can be surrendered in exchange for a film tax credit.