Income Tax Act 2007 section 800

Meaning of "film-related losses" etc.

Section 800 defines what constitutes a "film-related loss" and how to calculate an individual's claimed film-related losses, including the deduction of any previously recovered relief.

• A loss is a "film-related loss" if it arises from a profit or loss calculation made under the special tax rules for films (Chapter 9 of Part 2 of ITTOIA 2005).
• An individual's claimed film-related losses equal the total film-related losses claimed in the trade, minus any relevant recovered relief (the lower of income previously clawed back under the excess relief recovery rules and the total qualifying film-related losses claimed).
• A loss qualifies for the recovered relief calculation if it was made while the individual carried on the trade as a member of an LLP, a limited partner, or a non-active partner in an early tax year.
• Where a firm carries on more than one trade, the calculation is performed separately for each trade and the results are then added together.