Section 1179DO — Corporation Tax Act 2009: UK expenditure condition: provisional and final satisfaction

UK expenditure condition: provisional and final satisfaction 1179DO 1 A film or television programme meets the UK expenditure condition in a pre-completion period (see section 1179DY ) if—

a the production company’s company tax return for the period states—

i the total amount of core expenditure that is expected to be incurred in relation to the film or programme, and ii the amount of that expenditure that is expected to be UK expenditure, and b the second of those amounts is at least 10% of the first.

2 A film or television programme meets the UK expenditure condition in the completion period (see section 1179DY ) and any subsequent accounting period if—

a the production company’s company tax return for the completion period states—

i the total amount of core expenditure that has been incurred in relation to the film or programme, and ii the amount of that expenditure that is UK expenditure, and b the second of those amounts is at least 10% of the first.

3 Subsection (1) is subject to subsections (4) and (5) .

4 If a film or television programme does not meet the UK expenditure condition in a pre-completion period, it is no longer to be regarded as having done so (nor, therefore, as being a qualifying film or qualifying television programme) in any previous accounting period by virtue of subsection (1) as it applies to that previous period.

5 If a film or television programme does not meet the UK expenditure condition in the completion period, it is no longer to be regarded as having done so (nor, therefore, as being a qualifying film or qualifying television programme) in any pre-completion period.

6 References in this section to core expenditure are to core expenditure incurred—

a in the case of a film or programme other than a qualifying co-production, by the production company, or b in the case of a qualifying co-production, by the co-producers.

7 The Treasury may by regulations amend the percentage specified in subsection (1) or (2) .