Section 1191 | Costs of the film

(1)References in this Chapter to the costs of the film are to expenditure incurred by the company on—

(a)film-making activities in connection with the film, or

(b)activities with a view to exploiting the film.

(2)This is subject to any provision of the Corporation Tax Acts prohibiting the making of a deduction, or restricting the extent to which a deduction is allowed, in calculating the profits of a trade.

(3)Expenditure that (apart from this subsection) would be regarded as of a capital nature only because it is incurred on the creation of an asset (the film) is treated as being of a revenue nature.