Section 800 — Income Tax Act 2007: Meaning of “film-related losses” etc

Meaning of “film-related losses” etc 800 1 This section applies for the purposes of sections 797, 801 and 802.

2 A loss is a “film-related loss” if the calculation of profits or losses that it results from is made in accordance with any provision of Chapter 9 of Part 2 of ITTOIA 2005. 3 “ The individual's claimed film-related losses ” means—

a the total amount of film-related losses made by the individual in the trade so far as they are losses for which the individual has made a relevant claim, less b the amount of any relevant recovered relief. 4 “ The amount of any relevant recovered relief ” means—

a amount A, or b if less, amount B.

5 Amount A is the total amount of income treated as received by the individual under section 792 (recovery of excess relief) as a result of the application of that section in relation to claims for relief for losses made by the individual in the trade.

6 Amount B is the total amount of film-related losses within subsection (7) for which the individual has made a relevant claim.

7 A loss is within this subsection if it is made by the individual in the trade—

a in a tax year at a time during which the individual carries on the trade as a member of an LLP or as a limited partner, or b in an early tax year during which the individual carries on the trade as a non-active partner.

8 Expressions used in subsection (7) are to be read as if contained in Chapter 3 of Part 4.

9 Subsection (10) applies if—

a the individual has made a relevant claim for a film-related loss made in the trade as a partner in a firm, and b the firm is carrying on, or has carried on, more than one trade.

10 For the purpose of determining the individual's claimed film-related losses—

a apply subsection (3)(a) in relation to each of the trades and then add the results together, b apply subsection (5) as if the reference to the trade were a reference to any of the trades, and c apply subsections (6) and (7) in relation to each of the trades and then add the results together.