Section 921 — Corporation Tax Act 2010: Capital allowances deductions: films

Capital allowances deductions: films 921 1 This section applies if—

a any relevant film deduction has been allowed to the current lessor (“L”) in respect of expenditure incurred in connection with the leased asset, and b the amount or value of the major lump sum exceeds so much of that sum as was treated as receipts of a revenue nature under section 40A(2) of F(No.2)A 1992 (disposal proceeds of original master version of film treated as receipt of a revenue nature).

2 In subsection (1) “ relevant film deduction ” means any deduction as a result of—

a section 40B(1) of F(No.2)A 1992 (allocation of expenditure on master versions of films to periods), or b section 42 of that Act (relief for production or acquisition expenditure in respect of films).

3 L is treated as if receipts of a revenue nature arose to L from the trade or business in question on the relevant occasion.

4 The amount of those receipts is equal to the excess mentioned in subsection (1)(b).