CREC050100 - Eligible expenditure: overview

Section 1179CA Corporation Tax Act (CTA)听2009听

The amount of expenditure credit to which a production company is entitled听in respect of a qualifying production for a given accounting period is a percentage of听the amount of qualifying expenditure for that period. Qualifying expenditure is based on the amount of relevant global expenditure听that is UK expenditure.听

Relevant global expenditure is expenditure that is brought into account in calculating the profits of the separate production trade听(CREC035000)听and is also relevant production expenditure (CREC051000).听

UK expenditure听is expenditure on goods and services that are used or consumed in the United Kingdom听(CREC054000).听

To calculate the amount of expenditure credit due, it is necessary听to first identify:听

  • the extent to which expenditure is relevant global expenditure, and,听if it is,听

  • the extent to which it is UK expenditure.听

This chapter explains what听expenditure听is eligible and what is excluded. Please see Chapter 6 of this manual for details of how to calculate the amount of credit available for a production.听