June Budget – Film Tax Relief
HMRC have announced that they are correcting a ‘quirk’ in the legislation that restricts film tax relief in an unintended way for films which have some overseas expenditure. The new legislation which will be introduced in the Finance Bill to be published after the summer recess will be effective from 9 December 2009.
The quirk relates to the amount of tax credit claimable where films are produced over a period that spans more than one accounting period.
The proposed change to the legislation will adjust the way the amount surrenderable for tax credit is calculated. The calculation will become the lesser of:
- the available qualifying expenditure; and
- the loss for the period, plus any unsurrendered loss brought forward.