APC30200 | Losses: transfer of trade
From HM Revenue & Customs · Animation Production Company Manual
S-S Corporation Tax Act 2010 ()
The rules on transfers of trades in do not apply to transfers of animation trades between companies in common ownership.
The legislation in prevents the trade from being treated as permanently discontinued in the hands of the first company and a new trade starting in the hands of the second company. Instead, the second company is treated as succeeding to the trade of the first company.
The television tax regime permits only one company to be the Television Production Company (TPC) in relation to a programme and treats the activities of that company in relation to each programme as a separate trade.
As a result, once an animation trade has commenced it is impossible for a second company to succeed to the trade in relation to the programme. The rules in do not apply.
Where a TPC carries on a trade in relation to a qualifying programme and that trade ceases, it may be able to pass any losses on to:
another trade in relation to a qualifying programme that it is carrying on at the time of the cessation, or
to another trade in relation to a qualifying programme that another group company is carrying on at the time of the cessation.
See for details.