Section 614BV — Income Tax Act 2007: Capital allowances deductions: films and sound recordings

Capital allowances deductions: films and sound recordings 614BV 1 This section applies if—

a any relevant 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 134(2) of ITTOIA 2005 (disposal proceeds of original master version of film or sound recording treated as receipt of a revenue nature).

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

a section 135 of ITTOIA 2005 (allocation of expenditure on master versions of films or sound recordings to periods), or b section 138, 138A, 139 or 140 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).