Finance Bill

House of Commons

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

(b)
provide that expenditure of a specified description is or is not
to be regarded as qualifying expenditure.
1216CG
Amount of additional deduction
(1)
For the first period of account during which the separate programme
trade is carried on, the amount of the additional deduction is—
5

where E is—
(a)
so much of the qualifying expenditure as is UK expenditure,
or
(b)
if less, 80% of the total amount of qualifying expenditure.
(2)
For any period of account after the first, the amount of the additional
10
deduction is given by—

where—
E is—
(a)
so much of the qualifying expenditure incurred to
date as is UK expenditure, or
15
(b)
if less, 80% of the total amount of qualifying
expenditure incurred to date, and
P is the total amount of the additional deductions given for
previous periods.
(3)
The Treasury may by regulations amend this section.
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Television tax credits
1216CH
Television tax credit claimable if company has surrenderable loss
(1)
If television tax relief is available to the company, it may claim a
television tax credit for an accounting period in which it has a
surrenderable loss.
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(2)
The company’s surrenderable loss in an accounting period is—
(a)
the company’s available loss for the period in the separate
programme trade (see subsection (3)), or
(b)
if less, the available qualifying expenditure for the period (see
subsections (5) and (6)).
30
(3)
The company’s available loss for an accounting period is given by—

where—
L is the amount of the company’s loss for the period in the
separate programme trade, and
RUL is the amount of any relevant unused loss of the company
35
(see subsection (4)).
(4)
The “relevant unused loss” of a company is so much of any available
loss of the company for the previous accounting period as has not
been—
(a)
surrendered under section 1216CI(1), or
40

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009
273

(b)
carried forward under section 45 of CTA 2010 and set against
profits of the separate programme trade.
(5)
For the first period of account during which the separate programme
trade is carried on, the available qualifying expenditure is the
amount that is E for that period for the purposes of section
5
1216CG(1).
(6)
For any period of account after the first, the available qualifying
expenditure is given by—

where—
E is the amount that is E for that period for the purposes of
10
section 1216CG(2), and
S is the total amount previously surrendered under section
1216CI(1).
(7)
If a period of account of the separate programme trade does not
coincide with an accounting period, any necessary apportionments
15
are to be made by reference to the number of days in the periods
concerned.
1216CI
Surrendering of loss and amount of television tax credit
(1)
The company may surrender the whole or part of its surrenderable
loss in an accounting period.
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(2)
If the company surrenders the whole or part of that loss, the amount
of the television tax credit to which it is entitled for the accounting
period is 25% of the amount of the loss surrendered.
(3)
The company’s available loss for the accounting period is reduced by
the amount surrendered.
25
1216CJ
Payment in respect of television tax credit
(1)
If the company—
(a)
is entitled to a television tax credit for a period, and
(b)
makes a claim,

the Commissioners for Her Majesty’s Revenue and Customs (“the
30
Commissioners”) must pay to the company the amount of the credit.
(2)
An amount payable in respect of—
(a)
a television tax credit, or
(b)
interest on a television tax credit under section 826 of ICTA,

may be applied in discharging any liability of the company to pay
35
corporation tax.

To the extent that it is so applied the Commissioners’ liability under
subsection (1) is discharged.
(3)
If the company’s company tax return for the accounting period is
enquired into by the Commissioners, no payment in respect of a
40
television tax credit for that period need be made before the
Commissioners’ enquiries are completed (see paragraph 32 of
Schedule 18 to FA 1998).

In those circumstances the Commissioners may make a payment on
a provisional basis of such amount as they consider appropriate.
45

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009
274

(4)
No payment need be made in respect of a television tax credit for an
accounting period before the company has paid to the
Commissioners any amount that it is required to pay for payment
periods ending in that accounting period—
(a)
under PAYE regulations,
5
(b)
under section 966 of ITA 2007 (visiting performers), or
(c)
in respect of Class 1 national insurance contributions under
Part 1 of the Social Security Contributions and Benefits Act
1992 or Part 1 of the Social Security Contributions and
Benefits (Northern Ireland) Act 1992.
10
(5)
A payment in respect of a television tax credit is not income of the
company for any tax purpose.
Miscellaneous
1216CK
No account to be taken of amount if unpaid
(1)
In determining for the purposes of this Chapter the amount of costs
15
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
that period.
(2)
This is without prejudice to the operation of section 1216BD (when
costs are taken to be incurred).
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1216CL
Artificially inflated claims for additional deduction or tax credit
(1)
So far as a transaction is attributable to arrangements entered into
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
25
this Chapter, and
(b)
any television tax credit to be given to a company.
(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—
30
(a)
an additional deduction under this Chapter to which it
would not otherwise be entitled or of a greater amount than
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
35
otherwise be entitled.
(3)
“Arrangements” includes any scheme, agreement or understanding,
whether or not legally enforceable.
1216CM
Confidentiality of information
(1)
Section 18(1) of the Commissioners for Revenue and Customs Act
40
2005 (restriction on disclosure by Revenue and Customs officials)
does not prevent disclosure to the Secretary of State for the purposes
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—
45

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009
275

(a)
sections 1216CB to 1216CD (certification of relevant
programmes as British),
(b)
sections 1217CB to 1217CD (certification of video games as
British), and
(c)
Schedule 1 to the Films Act 1985 (certification of films as
5
British).
(3)
Information so disclosed may be disclosed to the British Film
Institute.
(4)
The Treasury may by order amend subsection (3)—
(a)
so as to substitute for the person or body specified in that
10
subsection a different person or body, or
(b)
in consequence of a change in the name of the person or body
so specified.
(5)
A person to whom information is disclosed under subsection (1) or
(3) may not otherwise disclose it except—
15
(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,
(c)
in pursuance of an order of a court,
(d)
for the purposes of a criminal investigation or legal
20
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,
(e)
with the consent of the Commissioners for Her Majesty’s
Revenue and Customs, or
25
(f)
with the consent of each person to whom the information
relates.
1216CN
Wrongful disclosure
(1)
A person (“X”) commits an offence if—
(a)
X discloses revenue and customs information relating to a
30
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
specified in the disclosure or can be deduced from it, and
(c)
the disclosure contravenes section 1216CM(5).
35
(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
(b)
that the information had already and lawfully been made
available to the public.
40
(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
(b)
on summary conviction, to imprisonment for a term not
exceeding 12 months or a fine not exceeding the statutory
45
maximum or both.

Finance Bill
Schedule 15 — Tax relief for television production
Part 1 — Amendments of CTA 2009
276

(4)
A prosecution for an offence under subsection (1) may be brought in
England and Wales only—
(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
5
Northern Ireland only—
(a)
by the Commissioners for Her Majesty’s Revenue and
Customs, or
(b)
with the consent of the Director of Public Prosecutions for
Northern Ireland.
10
(6)
In the application of this section—
(a)
in England and Wales, in relation to an offence committed
before the commencement of section 282 of the Criminal
Justice Act 2003, or
(b)
in Northern Ireland,
15

the reference in subsection (3)(b) to 12 months is to be read as a
reference to 6 months.
Chapter 4
Programme losses
1216D
Application of sections 1216DA and 1216DB
20
(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
company—
25
(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,
“loss relief” includes any means by which a loss might be used
30
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
“the separate programme trade” means the company’s separate
35
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
separate programme trade.
40
(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.