188体育

This example shows how Part 15A Corporation Tax Act 2009 operates to arrive at the profits/losses of a Television Production Company (TPC) producing a programme whose costs increase during production, with the final expenditure exceeding the original estimate.

A TPC is commissioned by a broadcaster to make a programme for an agreed budget of 拢1.52m and agrees to sell all the rights in the programme to the broadcaster for 拢1.55尘. At the end of the first accounting period the TPC has spent 拢1尘 and still expects to complete the programme for 拢1.52m. In the second accounting period, the company spends a further 拢530k. It goes 拢10,000 over budget. The programme is not eligible for TTR.

In the examples, none of the costs are disallowed under the Taxes Acts.

The profits in each Accounting Period are calculated as follows.

Period 1

-	Amount	Notes
Expenditure incurred by end of period	拢1尘	Out of total expected costs of 拢1.52m
Income treated as earned by end of period	拢1.02尘	Expected total income of 拢1.55尘. The extent to which this is allocated to Period 1 mirrors the extent to which total expected costs fall within Period 1.\n拢1.02 = 拢1.55尘 x 拢1尘/拢1.52m
Profit	拢20办	-

Period 2

-	Amount	Difference	Notes
Expenditure incurred by end of period	拢1.53尘	-	-
Increase in expenditure incurred over previous period	-	拢0.53尘	拢1.53尘 less 拢1尘
Income treated as earned by end of period	拢1.55尘	-	-
Increase in income treated as earned over previous period	-	拢0.53尘	拢1.55 less 拢1.02尘
Profit	-	拢苍颈濒	-