Section 74D | Meaning of “qualifying film expenditure” for purposes of sections 74ZA and 74A ^F1

(1)For the purposes of sections 74ZA and 74A expenditure is qualifying film expenditure if—^F1F2

(a)it is deducted under a relevant film provision for the purposes of calculating the profits of a trade, or^F1

(b)it is incidental expenditure which (although not deducted under a relevant film provision) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is so deducted.^F1

(2)Expenditure is incidental if it is on management, administration or obtaining finance.^F1

(3)The extent to which expenditure is within subsection (1)(b) is determined on a just and reasonable basis.^F1

(4)For the purposes of sections 74ZA and 74A the amount of any loss that derives from qualifying film expenditure is determined on a just and reasonable basis.^F1F3

(5)In this section—^F1

“the acquisition of the original master version of a film” has the same meaning as in Chapter 9 of Part 2 of ITTOIA 2005 (see sections 130 and 132 of that Act),

“film” is to be read in accordance with paragraph 1 of Schedule 1 to the Films Act 1985, and

“a relevant film provision” means any one of sections 137 to 140 of ITTOIA 2005 (relief for certified master versions of films).