Section 614BV | Capital allowances deductions: films and sound recordings

(1)This section applies if—

(a)any relevant deduction has been allowed to the current lessor (“L”) in respect of expenditure incurred in connection with the leased asset, and

(b)the amount or value of the major lump sum exceeds so much of that sum as was treated as receipts of a revenue nature under section 134(2) of ITTOIA 2005 (disposal proceeds of original master version of film or sound recording treated as receipt of a revenue nature).

(2)In subsection (1) “relevant deduction” means any deduction as a result of—

(a)section 135 of ITTOIA 2005 (allocation of expenditure on master versions of films or sound recordings to periods), or

(b)section 138, 138A, 139 or 140 of that Act (relief for production or acquisition expenditure in respect of films).

(3)L is treated as if receipts of a revenue nature arose to L from the trade or business in question on the relevant occasion.

(4)The amount of those receipts is equal to the excess mentioned in subsection (1)(b).