Section 74D — Income Tax Act 2007: Meaning of “qualifying film expenditure” for purposes of sections 74ZA and 74A

Meaning of “qualifying film expenditure” for purposes of sections 74ZA and 74A 74D 1 For the purposes of sections 74ZA and 74A expenditure is qualifying film expenditure if—

a it is deducted under a relevant film provision for the purposes of calculating the profits of a trade, or b it is incidental expenditure which (although not deducted under a relevant film provision) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is so deducted.

2 Expenditure is incidental if it is on management, administration or obtaining finance.

3 The extent to which expenditure is within subsection (1)(b) is determined on a just and reasonable basis.

4 For the purposes of sections 74ZA and 74A the amount of any loss that derives from qualifying film expenditure is determined on a just and reasonable basis.

5 In this section— “ the acquisition of the original master version of a film ” has the same meaning as in Chapter 9 of Part 2 of ITTOIA 2005 (see sections 130 and 132 of that Act), “ film ” is to be read in accordance with paragraph 1 of Schedule 1 to the Films Act 1985, and “ a relevant film provision ” means any one of sections 137 to 140 of ITTOIA 2005 (relief for certified master versions of films).