Session 2013 - 14
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Finance Bill


Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009

272

 

Miscellaneous

1216CK  

No account to be taken of amount if unpaid

(1)   

In determining for the purposes of this Chapter the amount of costs

incurred on a relevant programme at the end of a period of account,

ignore any amount that has not been paid 4 months after the end of

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that period.

(2)   

This is without prejudice to the operation of section 1216BD (when

costs are taken to be incurred).

1216CL  

Artificially inflated claims for additional deduction or tax credit

(1)   

So far as a transaction is attributable to arrangements entered into

10

wholly or mainly for a disqualifying purpose, it is to be ignored in

determining for any period—

(a)   

any additional deduction which a company may make under

this Chapter, and

(b)   

any television tax credit to be given to a company.

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(2)   

Arrangements are entered into wholly or mainly for a disqualifying

purpose if their main object, or one of their main objects, is to enable

a company to obtain—

(a)   

an additional deduction under this Chapter to which it

would not otherwise be entitled or of a greater amount than

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that to which it would otherwise be entitled, or

(b)   

a television tax credit to which it would not otherwise be

entitled or of a greater amount than that to which it would

otherwise be entitled.

(3)   

“Arrangements” includes any scheme, agreement or understanding,

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whether or not legally enforceable.

1216CM  

Confidentiality of information

(1)   

Section 18(1) of the Commissioners for Revenue and Customs Act

2005 (restriction on disclosure by Revenue and Customs officials)

does not prevent disclosure to the Secretary of State for the purposes

30

of the Secretary of State’s functions under any of the provisions listed

in subsection (2).

(2)   

The provisions referred to in subsection (1) are—

(a)   

sections 1216CB to 1216CD (certification of relevant

programmes as British),

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(b)   

sections 1217CB to 1217CD (certification of video games as

British), and

(c)   

Schedule 1 to the Films Act 1985 (certification of films as

British).

(3)   

Information so disclosed may be disclosed to the British Film

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Institute.

(4)   

The Treasury may by order amend subsection (3)—

(a)   

so as to substitute for the person or body specified in that

subsection a different person or body, or

(b)   

in consequence of a change in the name of the person or body

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so specified.

 
 

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009

273

 

(5)   

A person to whom information is disclosed under subsection (1) or

(3) may not otherwise disclose it except—

(a)   

for the purposes of the Secretary of State’s functions under

any of the provisions listed in subsection (2),

(b)   

if the disclosure is authorised by an enactment,

5

(c)   

in pursuance of an order of a court,

(d)   

for the purposes of a criminal investigation or legal

proceedings (whether civil or criminal) connected with the

operation of any of Parts 15 to 15B of this Act or Schedule 1 to

the Films Act 1985,

10

(e)   

with the consent of the Commissioners for Her Majesty’s

Revenue and Customs, or

(f)   

with the consent of each person to whom the information

relates.

1216CN  

Wrongful disclosure

15

(1)   

A person (“X”) commits an offence if—

(a)   

X discloses revenue and customs information relating to a

person (as defined in section 19(2) of the Commissioners for

Revenue and Customs Act 2005),

(b)   

the identity of the person to whom the information relates is

20

specified in the disclosure or can be deduced from it, and

(c)   

the disclosure contravenes section 1216CM(5).

(2)   

If a person (“Y”) is charged with an offence under subsection (1), it is

a defence for Y to prove that Y reasonably believed—

(a)   

that the disclosure was lawful, or

25

(b)   

that the information had already and lawfully been made

available to the public.

(3)   

A person guilty of an offence under subsection (1) is liable—

(a)   

on conviction on indictment, to imprisonment for a term not

exceeding two years or a fine or both, or

30

(b)   

on summary conviction, to imprisonment for a term not

exceeding 12 months or a fine not exceeding the statutory

maximum or both.

(4)   

A prosecution for an offence under subsection (1) may be brought in

England and Wales only—

35

(a)   

by the Director of Revenue and Customs Prosecutions, or

(b)   

with the consent of the Director of Public Prosecutions.

(5)   

A prosecution for an offence under subsection (1) may be brought in

Northern Ireland only—

(a)   

by the Commissioners for Her Majesty’s Revenue and

40

Customs, or

(b)   

with the consent of the Director of Public Prosecutions for

Northern Ireland.

(6)   

In the application of this section—

(a)   

in England and Wales, in relation to an offence committed

45

before the commencement of section 282 of the Criminal

Justice Act 2003, or

 
 

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009

274

 

(b)   

in Northern Ireland,

   

the reference in subsection (3)(b) to 12 months is to be read as a

reference to 6 months.

Chapter 4

Programme losses

5

1216D   

Application of sections 1216DA and 1216DB

(1)   

Sections 1216DA and 1216DB apply to a company that is the

television production company in relation to a relevant programme.

(2)   

In those sections—

“the completion period” means the accounting period of the

10

company—

(a)   

in which the relevant programme is completed, or

(b)   

if the company does not complete the relevant

programme, in which it abandons television

production activities in relation to the programme,

15

“loss relief” includes any means by which a loss might be used

to reduce the amount in respect of which the company, or any

other person, is chargeable to tax,

“pre-completion period” means an accounting period of the

company before the completion period, and

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“the separate programme trade” means the company’s separate

trade in relation to the relevant programme (see section

1216B).

1216DA  

Restriction on use of losses while programme in production

(1)   

This section applies if in a pre-completion period a loss is made in the

25

separate programme trade.

(2)   

The loss is not available for loss relief except to the extent that it may

be carried forward under section 45 of CTA 2010 to be set against

profits of the separate programme trade in a subsequent period.

1216DB  

Use of losses in later periods

30

(1)   

This section applies to the following accounting periods of the

company (“relevant later periods”)—

(a)   

the completion period, and

(b)   

any subsequent accounting period during which the separate

programme trade continues.

35

(2)   

Subsection (3) applies if a loss made in the separate programme trade

is carried forward under section 45 of CTA 2010 from a pre-

completion period to a relevant later period.

(3)   

So much (if any) of the loss as is not attributable to television tax

relief (see subsection (6)) may be treated for the purposes of loss

40

relief as if it were a loss made in the period to which it is carried

forward.

 
 

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009

275

 

(4)   

Subsection (5) applies if in a relevant later period a loss is made in the

separate programme trade.

(5)   

The amount of the loss that may be—

(a)   

deducted from total profits of the same or an earlier period

under section 37 of CTA 2010, or

5

(b)   

surrendered as group relief under Part 5 of that Act,

   

is restricted to the amount (if any) that is not attributable to television

tax relief (see subsection (6)).

(6)   

The amount of a loss in any period that is attributable to television

tax relief is calculated by deducting from the total amount of the loss

10

the amount there would have been if there had been no additional

deduction under Chapter 3 in that or any earlier period.

(7)   

This section does not apply to a loss to the extent that it is carried

forward or surrendered under section 1216DC.

1216DC  

Terminal losses

15

(1)   

This section applies if—

(a)   

a company (“company A”) is the television production

company in relation to a qualifying programme,

(b)   

company A ceases to carry on its separate trade in relation to

that programme (“trade X”) (see section 1216B), and

20

(c)   

if company A had not ceased to carry on trade X, it could

have carried forward an amount under section 45 of CTA

2010 to be set against profits of trade X in a later period (“the

terminal loss”).

(2)   

If on cessation of trade X company A—

25

(a)   

is the television production company in relation to another

qualifying programme, and

(b)   

is carrying on its separate trade in relation to that programme

(“trade Y”),

   

it may (on making a claim) make an election under subsection (3).

30

(3)   

The election is to have the terminal loss (or a part of it) treated as if it

were a loss brought forward under section 45 of CTA 2010 to be set

against the profits of trade Y in the first accounting period beginning

after the cessation and so on.

(4)   

Subsection (5) applies if on cessation of trade X—

35

(a)   

there is another company (“company B”) that is the television

production company in relation to a qualifying programme,

(b)   

company B is carrying on its separate trade in relation to that

programme (“trade Z”), and

(c)   

company B is in the same group as company A for the

40

purposes of Part 5 of CTA 2010 (group relief).

(5)   

Company A may surrender the terminal loss (or a part of it) to

company B.

(6)   

On the making of a claim by company B the amount surrendered is

treated as if it were a loss brought forward by company B under

45

section 45 of CTA 2010 to be set against the profits of trade Z of the

 
 

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009

276

 

first accounting period of that company beginning after the cessation

and so on.

(7)   

The Treasury may, in relation to the surrender of a loss under

subsection (5) and the resulting claim under subsection (6), make

provision by regulations corresponding, subject to such adaptations

5

or other modifications as appear to them to be appropriate, to that

made by Part 8 of Schedule 18 to FA 1998 (company tax returns:

claims for group relief).

(8)   

“Qualifying programme” means a relevant programme in relation to

which the conditions for television tax relief are met (see 1216C(2)).

10

Chapter 5

Provisional entitlement to relief

1216E   

Introduction

(1)   

In this Chapter—

“the company” means the television production company in

15

relation to a relevant programme,

“the completion period” means the accounting period of the

company—

(a)   

in which the relevant programme is completed, or

(b)   

if the company does not complete the relevant

20

programme, in which it abandons television

production activities in relation to it,

“interim accounting period” means any earlier accounting

period of the company during which television production

activities are carried on in relation to the relevant

25

programme,

“interim certificate” and “final certificate” have the meaning

given by section 1216CC,

“the separate programme trade” means the company’s separate

trade in relation to the relevant programme (see section

30

1216B), and

“special television relief” means—

(a)   

television tax relief, or

(b)   

relief under section 1216DC (transfer of terminal

losses from one relevant programme to another).

35

(2)   

The company’s company tax return for the completion period must

state that the relevant programme has been completed or that the

company has abandoned television production activities in relation

to it (as the case may be).

1216EA  

Certification as a British programme

40

(1)   

The company is not entitled to special television relief for an interim

accounting period unless its company tax return for the period is

accompanied by an interim certificate.

(2)   

If an interim certificate ceases to be in force (otherwise than on being

superseded by a final certificate) or is revoked, the company—

45

 
 

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009

277

 

(a)   

is not entitled to special television relief for any period for

which its entitlement depended on the certificate, and

(b)   

must amend accordingly its company tax return for any such

period.

(3)   

If the relevant programme is completed by the company—

5

(a)   

its company tax return for the completion period must be

accompanied by a final certificate,

(b)   

if that requirement is met, the final certificate has effect for

the completion period and for any interim accounting period,

and

10

(c)   

if that requirement is not met, the company—

(i)   

is not entitled to special television relief for any

period, and

(ii)   

must amend accordingly its company tax return for

any period for which such relief was claimed.

15

(4)   

If the company abandons television production activities in relation

to the relevant programme—

(a)   

its company tax return for the completion period may be

accompanied by an interim certificate, and

(b)   

the abandonment of television production activities does not

20

affect any entitlement to special television relief in that or any

previous accounting period.

(5)   

If a final certificate is revoked, the company—

(a)   

is not entitled to special television relief for any period, and

(b)   

must amend accordingly its company tax return for any

25

period for which such relief was claimed.

1216EB  

The UK expenditure condition

(1)   

The company is not entitled to special television relief for an interim

accounting period unless—

(a)   

its company tax return for the period states the amount of

30

planned core expenditure on the relevant programme that is

UK expenditure, and

(b)   

that amount is such as to indicate that the condition in section

1216CE (the UK expenditure condition) will be met on

completion of the programme.

35

   

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 programme, the

company—

40

(a)   

is not entitled to special television 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 relevant programme is completed or the company

45

abandons television production activities in relation to it (as the case

may be), the company’s company tax return for the completion

 
 

Finance Bill
Schedule 15 — Tax relief for television production
Part 2 — Commencement

278

 

period must be accompanied by a final statement of the amount of

core expenditure on the programme that is UK expenditure.

(4)   

If that statement shows that the condition in section 1216CE is not

met, the company—

(a)   

is not entitled to special television relief for any period, and

5

(b)   

must amend accordingly its company tax return for any

period for which such relief was claimed.

1216EC  

Time limit for amendments and assessments

   

Any amendment or assessment necessary to give effect to the

provisions of this Chapter may be made despite any limitation on the

10

time within which an amendment or assessment may normally be

made.”

Part 2

Commencement

2     (1)  

Any power conferred on the Secretary of State or the Treasury by virtue of

15

this Schedule to make regulations or an order comes into force on the day on

which this Act is passed.

      (2)  

So far as not already brought into force by sub-paragraph (1), the

amendments made by this Schedule come into force in accordance with

provision contained in an order made by the Treasury.

20

      (3)  

An order under sub-paragraph (2)—

(a)   

may make different provision for different purposes;

(b)   

may make such adaptations of Part 15A of CTA 2009 as appear to be

necessary or expedient in consequence of other provisions of this Act

not yet having come into force.

25

3     (1)  

The amendments made by this Schedule have effect in relation to accounting

periods beginning on or after 1 April 2013.

      (2)  

Sub-paragraph (3) applies where a company has an accounting period

beginning before 1 April 2013 and ending on or after that date (“the

straddling period”).

30

      (3)  

For the purposes of Part 15A of CTA 2009—

(a)   

so much of the straddling period as falls before 1 April 2013, and so

much of that period as falls on or after that date, are treated as

separate accounting periods, and

(b)   

any amounts brought into account for the purposes of calculating for

35

corporation tax purposes the profits of any trade of the company for

the straddling period are apportioned to the two separate accounting

periods on such basis as is just and reasonable.

 
 

 
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