APC30010 | Losses - introduction
From HM Revenue & Customs · Animation Production Company Manual
S-S Corporation Tax Act 2009 ()
The profits or losses of animation activity conducted by a Television Production Company (TPC) are calculated by the rules in . The animation produces profits and losses of a separate trade. TTR may create or increase losses incurred by this trade for tax purposes.
There are restrictions for losses of an animation trade of a TPC.
Losses attributable to an animation trade are only available to:
carry forward for relief against future profits of the same animation trade,
use against other profits of the company or surrender through group relief once the programme has been completed, and
surrender under specific Television Tax Relief (TTR) rules for terminal losses.
For normal trades not eligible for TTR or similar reliefs, losses may be set off in a number of ways including against other income or surrendering to other companies in a group. This is not possible for an animation trade within until the programme is completed.