Income Tax (Trading and Other Income) Act 2005 section 612

Calculation of income

Section 612 sets out the rules for calculating the amount of taxable income from non-trade businesses involving films and sound recordings, including which expenses may be deducted.

• Expenses wholly and exclusively incurred to generate the income are deductible, and where an expense has mixed purposes, only the identifiable portion relating solely to income generation may be deducted.
• Expenses that would not be allowable as deductions in calculating the profits of a trade are equally not deductible here.
• Expenses already receiving relief under any other provision of the Income Tax Acts cannot also be deducted under this section.
• Any relief available under section 613 (application of trading income rules to non-trade businesses) is given in addition to the relief under this section, not instead of it.