Section 1217IC | Costs of the production

(1)References in this Part to the costs of a theatrical production are to expenditure incurred by the company on—

(a)the activities involved in developing, producing, running and closing the production, or

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

(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 which, apart from this subsection, would be regarded as being of a capital nature only because it is incurred on the creation of an asset (i.e. the theatrical production) is treated as being of a revenue nature. (As to other capital expenditure, see section 53 and subsection (2).)