Section 1200 — Corporation Tax Act 2009: Amount of additional deduction

Amount of additional deduction 1200 1 For the first period of account during which the separate film trade is carried on, the amount of the additional deduction is given by— E × R where— E is— (a) so much of the qualifying expenditure as is UK expenditure, or (b) if less, 80% of the total amount of qualifying expenditure, and R is the rate of enhancement (see subsection (3)).

2 For any period of account after the first, the amount of the additional deduction is given by— ( E × R ) - P where— E is— (a) so much of the qualifying expenditure incurred to date as is UK expenditure, or (b) if less, 80% of the total amount of qualifying expenditure incurred to date, R is the rate of enhancement (see subsection (3)), and P is the total amount of the additional deductions given for previous periods.

3 The rate of enhancement is 100%.

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