Section 1179BE | Treatment of certain capital amounts as revenue

(1)This section applies for corporation tax purposes in relation to the separate production trade.

(2)Expenditure that—

(a)counts as costs of the qualifying production, and

(b)would (apart from this subsection) be regarded as of a capital nature by reason only of being incurred on the creation of an asset in the form of the qualifying production,

is to be treated as expenditure of a revenue nature.(As to other capital expenditure, see section 53 and section 1179BB(6).)

(3)Receipts that—

(a)count as income from the qualifying production, and

(b)would (apart from this subsection) be regarded as of a capital nature,

are to be treated as receipts of a revenue nature.