CREC010800 - Overview and definitions: exchange of information between HMRC, DCMS and the BFI
Sections 1179DN and 1179FG of CTA 2009听
AVEC and VGEC are available to a production company only in respect of a film, TV programme听and video game which has been certified (on either an interim or final basis) as British by the Secretary of State for the Department for Culture, Media听and Sport (DCMS) under:听
Schedule 1 of the Films Act 1985听
Sections 1179DK to 1179DM of CTA 2009听
Sections 1179FD to 1179FF of CTA 2009听
Where a production company does not hold a current certificate in respect of a production, the production is not eligible for AVEC/VGEC. See CREC028000.听听
In practice, the Secretary of State certifies films on the advice of the Certification Unit听within the British Film Institute (BFI).听DCMS also has the authority to revoke a certificate previously issued.听
An application for an interim certificate can be made whilst production/development is ongoing,听but an application for a final certificate can only be made once the film, TV programme听or game听is completed.听Unless they are revoked, interim certificates are valid for 3 years from the date of issue and final certificates are valid indefinitely.听
It is possible that HMRC could uncover information during the normal enquiry process which suggests that a production does not meet the criteria for being certified as British. In some cases, this might constitute听evidence that a production had been certified as British on the basis of听incorrect or inaccurate information. However, HMRC would not be able simply to disregard the certificate presented by the production company; a certificate can only be revoked by DCMS.听
To address this situation,听HMRC is authorised听to provide DCMS information relevant to听certification. Such provision could lead to DCMS revoking the original certificate and the denial of AVEC/VGEC in relation to the production. One effect of sections 1179DN and 1179FG听CTA 2009, therefore, is to prevent production companies from making claims for expenditure credits to which they are not entitled.听
HMRC has discretion about how it exercises this authority; DCMS cannot听demand information from HMRC. Any information provided by HMRC to DCMS must relate to the Secretary of State鈥檚 functions under the Films Act听or the relevant sections of CTA 2009.听DCMS may share any such information with the BFI Certification听Unit.听
Information disclosed听by HMRC in this way is subject to the same protection as if it were held exclusively by HMRC and听cannot be shared outside DCMS and the BFI Certification Unit,听except in certain limited circumstances described in section 1179DN(4)听CTA 2009. Wrongful disclosure of such information would constitute听an offence and an individual committing this offence is liable to a fine or imprisonment.听
If you discover information which you believe has a bearing upon a production which might have been certified on the basis of false or incorrect information provided to DCMS, you should contact Anti-Avoidance Group in the first instance.听
Information provided by applicants to DCMS during the process of applying for a certificate is not normally disclosed听to third parties.听However, DCMS may disclose听information to the BFI Certification Unit and HMRC.听
More information about certification can be found at the following webpage: 听
Queries concerning certification听should be directed to the BFI Certification Unit at [email protected]听