Section 1214 | The UK expenditure condition

(1)The company is not entitled to special film relief for an interim accounting period unless—

(a)its company tax return for the period states the amount of planned core expenditure on the film that is UK expenditure, and

(b)that amount is such as to indicate that the condition in section 1198 (the UK expenditure condition) will be met on completion of the film.

If those requirements are met, the company is provisionally treated in relation to that period as if that condition was met.

(2)If such a statement is made but it subsequently appears that the condition will not be met on completion of the film, the company—

(a)is not entitled to special film relief for any period for which its entitlement depended on such a statement, and

(b)must amend accordingly its company tax return for any such period.

(3)When the film is completed or the company abandons film-making activities in relation to it (as the case may be), the company's company tax return for the completion period must be accompanied by a final statement of the amount of the core expenditure on the film that is UK expenditure.

(4)If that statement shows that the condition in section 1198 is not met, the company—

(a)is not entitled to special film relief for any period, and

(b)must amend accordingly its company tax return for any period for which such relief was claimed.