CREC030100 | Taxation: overview

Chapter 2 Part 14A Corporation Tax Act (CTA) 2009

Companies that intend to make a claim for any of the Creatives Expenditure Credits must follow some special rules when preparing their tax computation.

The main difference from normal Corporation Tax rules is that the company must treat every production as a separate trade. This means that the income and expenditure in relation to that production must be separated out from any other activities of the company and used to calculate a profit or loss total that is solely applicable to that project.

The other difference is that there are special rules about the timing of when income and expenditure should be recognised in the tax computation.

These rules only apply to productions for which the company is claiming an expenditure credit. This differs from the predecessor Film Tax Relief regime, which applied to all films produced by film production companies regardless of whether they received tax relief.