Income Tax Act 2007 section 103D

Meaning of "qualifying film expenditure"

Section 103D defines what counts as "qualifying film expenditure" for the purposes of restricting sideways loss relief and capital gains relief available to partners in film investment partnerships.

• Expenditure qualifies if it is deducted under one of the specific film relief provisions (sections 137 to 140 of ITTOIA 2005) when calculating a partnership's profits or losses
• Incidental expenditure — on management, administration or obtaining finance — also qualifies if it is connected with the production or acquisition of a film for which a deduction is claimed under those film relief provisions
• The extent to which incidental expenditure qualifies, and the amount of any resulting loss attributable to qualifying film expenditure, must each be determined on a just and reasonable basis
• Key terms such as "film", "original master version" and "relevant film provision" are defined by reference to existing legislation including the Films Act 1985 and ITTOIA 2005