Source: http://www.legislation.gov.uk/ukpga/2006/25/schedule/5
Timestamp: 2013-05-20 21:28:49
Document Index: 783431885

Matched Legal Cases: ['art. 2', 'art. 2', 'art 1', 'art. 2', 'art 2', 'art. 2', 'art 3', 'art 9', 'art 9', 'art 9', 'art 4']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsHomeAbout UsBrowse LegislationNew LegislationChanges to LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchFinance Act 2006You are here:2006 c. 25SCHEDULE 5Table of ContentsContentMore ResourcesPrevious: ScheduleNext: SchedulePlain ViewPrint Options
Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 2006. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to :Changes and effectsThis section lists the changes and effects yet to be applied to the specific provision you are viewing.Sch. 5 para. 6 modified (retrospective) by 2010 c. 33 s. 14(8)Sch. 5 para. 11 modified (retrospective) by 2010 c. 33 s. 14(8)Sch. 5 para. 24 repealed by 2009 c. 4 Sch. 1 para. 694(b) Sch. 3 Pt. 1Sch. 5 para. 25 repealed by 2009 c. 4 Sch. 1 para. 694(b) Sch. 3 Pt. 1Sch. 5 Pt. 1 repealed by 2009 c. 4 Sch. 1 para. 694(a) Sch. 3 Pt. 1Sch. 5 Pt. 4 repealed by 2009 c. 4 Sch. 1 para. 694(c) Sch. 3 Pt. 1Changes and effects yet to be applied to the whole Act, associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Whole provisions yet to be inserted into this Act (including any effects on those provisions):s. 136A inserted by 2009 c. 10 Sch. 34 para. 8(1)s. 136A repealed by 2010 c. 4 Sch. 1 para. 483(c) Sch. 3 Pt. 1Commencement Orders yet to be applied to the Finance Act 2006:Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing provisions within this Act into force:S.I. 2008/1878 art. 2 commences (2006 c. 25)Commencement Orders bringing legislation that affects this Act into force:S.I. 2009/404 art. 2 commences (2008 c. 9)Section 42SCHEDULE 5E+W+S+N.I.Film tax relief: further provisions Part 1 E+W+S+N.I.Entitlement to film tax reliefIntroductionE+W+S+N.I.1(1)Film tax relief is available in accordance with this Schedule in respect of expenditure on a film—E+W+S+N.I.(a)that qualifies for the relief (see section 38), and(b)that commences principal photography on or after [F11st January 2007]F1 .(2)References in this Part of this Schedule to the trade of a film production company are to the trade that it is treated as carrying on under Schedule 4.Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F1Words in Sch. 5 para. 1(1)(b) substituted (29.12.2006) by The Finance Act 2006, Section 53(2) (Films and Sound Recordings: Power to alter Dates) Order 2006 (S.I. 2006/3265), {art. 2}Additional deduction in computing profits of tradeE+W+S+N.I.2The film production company may (on making a claim) make an additional deduction in calculating the profit or loss of its trade in respect of qualifying expenditure on the film.E+W+S+N.I.Qualifying expenditureE+W+S+N.I.3(1)Qualifying expenditure for this purpose means core expenditure on the film that falls to be taken into account under Schedule 4 in calculating the profit or loss of the trade for tax purposes.E+W+S+N.I.(2)The Treasury may by regulations—(a)amend sub-paragraph (1);(b)provide that expenditure of a specified description is or is not to be regarded for the purposes of this Part of this Schedule as qualifying expenditure.(3)No such regulations shall be made unless a draft of the regulations has been laid before and approved by a resolution of the House of Commons.Amount of additional deductionE+W+S+N.I.4(1)For the first period of account during which the trade is carried on the amount of the additional deduction is given by—E+W+S+N.I.where—
Payable credit rateE+W+S+N.I.8The payable credit rate is—E+W+S+N.I.(a)for a limited-budget film, 25%;(b)for a film other than a limited-budget film, 20%.Payment in respect of film tax creditE+W+S+N.I.9(1)Where—E+W+S+N.I.(a)a company is entitled to a film tax credit for a period, and(b)makes a claim,the Commissioners shall pay to the company the amount of the credit.
(2)An amount payable in respect of—(a)a film tax credit, or(b)interest on a film tax credit under section 826 of ICTA,may be applied in discharging any liability of the company to pay corporation tax.
(3)Where the company's company tax return for the accounting period is enquired into by the Commissioners, no payment in respect of a film 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 think fit.
(4)No payment need be made in respect of a film 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,(b)under section [F2966 of ITA 2007 (visiting performers)]F2 , or(c)in respect of Class 1 national insurance contributions.Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F2Words in Sch. 5 para. 9(4)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1027, Sch. 1 para. 623 (with transitional provisions and savings in Sch. 2)Payment in respect of film tax credit not incomeE+W+S+N.I.10A payment in respect of film tax credit is not income of the company for any tax purpose.E+W+S+N.I.Trading loss reduced by amount surrendered for film tax creditE+W+S+N.I.11The amount of a film production company's trading loss for an accounting period is reduced by any amount surrendered for a film tax credit.E+W+S+N.I.No account to be taken of amounts if unpaidE+W+S+N.I.12(1)In determining for the purposes of this Part of this Schedule the amount of costs incurred on a film at the end of a period of account no account is to be taken of any amount that has not been paid four months after the end of that period.E+W+S+N.I.(2)This is without prejudice to the operation of paragraph 9 of Schedule 4 (general rules as to when costs are taken to be incurred).Artificially inflated claims for deduction or film tax creditE+W+S+N.I.13(1)To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for any period—E+W+S+N.I.(a)any additional deduction to which a company is entitled under this Part of this Schedule, and(b)any film tax credit to which a company is entitled.(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 Part of this Schedule 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 film 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)In this paragraph “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.InterpretationE+W+S+N.I.14In this Part of this Schedule—E+W+S+N.I.“the Commissioners” means Her Majesty's Commissioners for Revenue and Customs;
Part 2 E+W+S+N.I.Certification of British films for purposes of film tax relief15For section 6 of the Films Act 1985 (c. 21) (certification of master negatives, tapes and discs for purposes of section 72 of FA 1982) substitute)—E+W+S+N.I.“6Certification of British filmsSchedule 1 to this Act has effect with respect to the certification by the Secretary of State of a film as a British film for the purposes of film tax relief.”.
16For the heading to Schedule 1 to that Act substitute “ Certification of British films for purposes of film tax relief ”.E+W+S+N.I.17For paragraph 1 of that Schedule substitute—E+W+S+N.I.“PreliminaryE+W+S+N.I.1(1)In this Schedule—
18For paragraph 2 of that Schedule substitute—E+W+S+N.I.“Applications for certificationE+W+S+N.I.2(1)The film production company may apply to the Secretary of State for the certification of a film as a British film.
19For paragraph 3 of that Schedule substitute—E+W+S+N.I.“Certification and withdrawal of certificationE+W+S+N.I.3(1)If the Secretary of State is satisfied that the requirements are met for interim or final certification of a film as a British film, he shall certify the film accordingly.
20In paragraph 4 of that Schedule (British films for purposes of the Schedule), for sub-paragraphs (1) to (3) substitute—E+W+S+N.I.“(1)A film is a British film for the purposes of this Schedule if it passes the relevant cultural test (see paragraph 4A, 4B or 4C).”.
21(1)Paragraph 5 of that Schedule (excluded films) is amended as follows.E+W+S+N.I.(2)For sub-paragraph (1) substitute—“(1)A film must not be certified as a British film for the purposes of this Schedule if parts of the film whose playing time exceeds 10% of the total playing time of the film are derived from a previous film, unless—
(3)After sub-paragraph (2) insert—“(3)For the purposes of this paragraph—
22In paragraph 9 of that Schedule (determination of disputes) for the words from “any decision of the Secretary of State” to “may” substitute “ any decision of the Secretary of State under paragraph 3 may ”.E+W+S+N.I.23In paragraph 10 of that Schedule (regulations and orders)—E+W+S+N.I.(a)in sub-paragraph (1)(c), for “2(4)” substitute “ 2(6); ”(b)in sub-paragraph (2), for “4 to 8” substitute “ 4 to 5 ”.Confidentiality of informationE+W+S+N.I.24(1)Section 18(1) of the Commissioners for Revenue and Customs Act 2005 (c. 11) (restriction on disclosure by Revenue and Customs officials) does not prevent disclosure to the Secretary of State for the purposes of his functions under Schedule 1 to the Films Act 1985 (c. 21) (certification of films as British films for the purposes of film tax relief).E+W+S+N.I.(2)Information so disclosed may be disclosed to the UK Film Council.(3)A person to whom information is disclosed under sub-paragraph (1) or (2) may not otherwise disclose it except—(a)for the purposes of the Secretary of State's functions under Schedule 1 to the Films Act 1985 (c. 21),(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 proceedings (whether civil or criminal) connected with the operation of that Schedule or this Chapter,(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.(4)The references in this paragraph to the functions of the Secretary of State under Schedule 1 to the Films Act 1985 do not include those functions in so far as they are exercised in relation to a film that commenced principal photography before [F31st January 2007]F3 .Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Amendments (Textual)F3Words in Sch. 5 para. 24(4) substituted (29.12.2006) by The Finance Act 2006, Section 53(2) (Films and Sound Recordings: Power to alter Dates) Order 2006 (S.I. 2006/3265), {art. 2}Wrongful disclosureE+W+S+N.I.25(1)A person commits an offence if—E+W+S+N.I.(a)he discloses information about a person in contravention of paragraph 24(3), and(b)the person's identity is specified in the disclosure, or can be deduced from it.(2)In sub-paragraph (1) “information about a person” means revenue and customs information relating to a person within the meaning of section 19(1) of the Commissioners for Revenue and Customs Act 2005 (c. 11) (wrongful disclosure).(3)It is a defence for a person charged with an offence under this paragraph to prove that he reasonably believed—(a)that the disclosure was lawful, or(b)that the information had already and lawfully been made available to the public.(4)A person guilty of an offence under this paragraph 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 twelve months or a fine not exceeding the statutory maximum or both.(5)A prosecution for an offence under this paragraph 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.(6)A prosecution for an offence under this paragraph may be brought in 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.(7)In the application of this paragraph—(a)in England and Wales, in relation to an offence committed before the commencement of section 282 of the Criminal Justice Act 2003 (c. 44), or(b)in Scotland or Northern Ireland,the reference in sub-paragraph (4)(b) to twelve months shall be read as a reference to six months.
Part 3 E+W+S+N.I.Consequential amendmentsInterestE+W+S+N.I.26(1)Section 826 of ICTA (interest on tax overpaid etc) is amended as follows.E+W+S+N.I.(2)In subsection (1) (payments that carry interest) after paragraph (e) insert— “; or (f)a payment of film tax credit falls to be made to a company.”.
(3)After subsection (3B) insert—“(3C)In relation to a payment of film tax credit the material date is whichever is the later of—
(4)In subsection (8A) (recovery of overpaid amounts)—(a)in paragraph (a), for “or (e)” substitute “ , (e) or (f) ”;(b)in paragraph (b)(ii) after “life assurance company tax credit” insert “ or film tax credit ”.(5)In subsection (8B) after “life assurance company tax credit” (twice) insert “ or film tax credit ”.Claim to be made in tax returnE+W+S+N.I.27In Schedule 18 to FA 1998 (company tax returns), in paragraph 10 (other claims etc to be included in return), after sub-paragraph (3) insert—E+W+S+N.I.“(4)A claim to which Part 9D of this Schedule applies (claims for film tax relief) can only be made by being included in a company tax return (see paragraph 83T).”.
Recovery of excessive film tax creditE+W+S+N.I.28In paragraph 52 of that Schedule (recovery of excessive repayments etc)—E+W+S+N.I.(a)in sub-paragraph (2) (excessive repayments etc to which paragraphs 41 to 48 apply), after paragraph (bc) insert—“(bd)film tax credit,”;
(b)in sub-paragraph (5) (connection of assessment for excessive payment to an accounting period), after paragraph (ad) insert—“(ae)an amount of film tax credit paid to a company for an accounting period,”;
(c)in the closing words of that sub-paragraph, after “(ad)” insert “ , (ae) ”.Claims for film tax creditsE+W+S+N.I.29After Part 9C of that Schedule insert—E+W+S+N.I. “Part 9D E+W+S+N.I.Claims for film tax reliefIntroduction83SThis Part of this Schedule applies to claims for film tax relief.
Claim to be included in company tax return83T(1)A claim to which this Part of this Schedule applies must be made by being included in the claimant company's tax return for the accounting period for which the claim is made.
Content of claim83UA claim to which this Part of this Schedule applies must specify the amount of the relief claimed, which must be an amount quantified at the time the claim is made.
Amendment or withdrawal of claim83VA claim to which this Part of this Schedule applies may be amended or withdrawn by the claimant company only by amending its company tax return.
Time limits for claim83W(1)A claim to which this part of this Schedule applies may be made, amended or withdrawn at any time up to the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made.
Penalty83X(3)The company is liable to a penalty where it—
Part 4 E+W+S+N.I.Provisional entitlement to reliefIntroductionE+W+S+N.I.30(1)In this Part of this Schedule—E+W+S+N.I.“the company” means the film production company;
(2)If it subsequently appears that the condition will not be met on completion of the film, the company—(a)is not entitled to film tax relief for any period on the basis that the film is a limited-budget film, and(b)must amend accordingly its company tax return for any such period for which relief has been claimed on that basis.(3)When the film is completed or, as the case may be, the company abandons film-making activities in relation to it—(a)its company tax return for the final accounting period must—(i)state that the film has been completed or, as the case may be, the company has abandoned film-making activities in relation to it, and(ii)be accompanied by a final statement of the core expenditure on the film; and(b)if the return shows that the film is not a limited-budget film, or (as the case may be) that having regard to the proportion of work on the film that was completed, it would not have been a limited-budget film if it had been completed, the company—(i)is not entitled to film tax relief for any period on the basis that the film is a limited-budget film, and(ii)must amend accordingly its company tax return for any period for which such relief was claimed on that basis.Time limit for amendments and assessmentsE+W+S+N.I.34Any amendment or assessment necessary to give effect to the provisions of this Part of this Schedule may be made notwithstanding any limitation on the time within which an amendment or assessment may normally be made.E+W+S+N.I.Previous: ScheduleNext: ScheduleBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Schedule onlyPDF This Schedule onlyWeb page This Schedule onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act as a PDFThe Whole Act you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open the Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open the Whole Act without Schedules