Corporation Tax Act 2010 section 376

Films

Section 376 provides an exemption from the long funding lease rules for lessors where the leased asset is a film.

• Where a company is or has been a lessor under a long funding lease of a film, the normal long funding lease rules for lessors (sections 360 to 369) do not apply.
• This exemption covers both finance leases and operating leases of films, as sections 360 to 369 encompass both types.
• The definition of "film" follows the meaning given in Part 15 of the Corporation Tax Act 2009 (section 1181 of that Act).
• The effect is that lessors of films under long funding leases are taxed under general principles rather than the specific long funding lease regime.