CREC050100 | Eligible expenditure: overview

Section 1179CA Corporation Tax Act (CTA) 2009

The amount of expenditure credit to which a production company is entitled in respect of a qualifying production for a given accounting period is a percentage of the amount of qualifying expenditure for that period. Qualifying expenditure is based on the amount of relevant global expenditure that is UK expenditure.

Relevant global expenditure is expenditure that is brought into account in calculating the profits of the separate production trade (CREC035000) and is also relevant production expenditure (CREC051000).

UK expenditure is expenditure on goods and services that are used or consumed in the United Kingdom (CREC054000).

To calculate the amount of expenditure credit due, it is necessary to first identify:

• the extent to which expenditure is relevant global expenditure, and, if it is,

• the extent to which it is UK expenditure.

This chapter explains what expenditure is eligible and what is excluded. Please see Chapter 6 of this manual for details of how to calculate the amount of credit available for a production.