Section 1217ID — Finance Act 2014: When costs are taken to be incurred

When costs are taken to be incurred 1217ID 1 For the purposes of this Part, the costs that have been incurred on a theatrical production at a given time—

a are those costs of the production that are represented in the state of completion of the work in progress, but b do not include any amount that has not been paid unless it is the subject of an unconditional obligation to pay.

2 In accordance with subsection (1)(a)—

a payments in advance of work to be done are ignored until the work has been carried out;

b deferred payments are recognised to the extent that the goods or services in question are represented in the state of completion of the work in progress (but this is subject to subsection (1)(b)).

3 Where an obligation to pay an amount is linked to income being earned from the theatrical production, the obligation is not treated as having become unconditional unless an appropriate amount of income is or has been brought into account under section 1217IA.

4 In determining for the purposes of this Part the amount of costs incurred on a theatrical production at the end of a period of account, any amount that has not been paid 4 months after the end of that period is to be ignored.