Section 1192 — Corporation Tax Act 2009: When costs are taken to be incurred

When costs are taken to be incurred 1192 1 For the purposes of this Chapter costs are incurred when they are represented in the state of completion of the work in progress.

2 Accordingly—

a payments in advance of work to be done are ignored until the work has been carried out, and b deferred payments are recognised to the extent that the work is represented in the state of completion.

3 The costs incurred on the film are taken to include an amount that has not been paid only if it is the subject of an unconditional obligation to pay.

4 If an obligation is linked to income being earned from the film, no amount is to be brought into account in respect of the costs of the obligation unless an appropriate amount of income is or has been brought into account.