Section 150 — Corporation Tax Act 2009: Revenue nature of expenditure

Revenue nature of expenditure 150 1 If a company carrying on a trade incurs expenditure on the production or acquisition of the original master version of a sound recording, the expenditure is treated for corporation tax purposes as expenditure of a revenue nature.

2 If expenditure is treated under this section as revenue in nature, sums received by the company from the disposal of the original master version of the sound recording—

a are treated for corporation tax purposes as receipts of a revenue nature, and b are brought into account in calculating the profits of the relevant period in which they are received.

3 For this purpose sums received from the disposal of the original master version include—

a sums received from the disposal of any interest or right in or over the original master version (including an interest or right created by the disposal),

and b insurance, compensation or similar money derived from the original master version.