BIM56105 - Film and audio products: qualifying films: definition of qualifying film

Much of the legislation relating to expenditure on films requires the film to be a qualifying British film before relief can be claimed.

The definition of a qualifying film is found in F2A92/S43. It is the master negative of a film certified by the Secretary of State at the Department of Culture, Media and Sport (DCMS) under Schedule 1 to the Films Act 1985 as a qualifying film.

For the purposes of the Films Act, and the film tax reliefs, film is defined as any record however made of a sequence of visual images which is capable of being used as a means of showing that sequence as a moving picture. This definition is a wide one that applies not only to cinema films but also to television programmes and other forms of visual media.

The test of ‘Britishness’ for the qualifying film is also a matter for the Secretary of State. It is governed by the Films (Modification of the Definition of ‘British Film’) Order 1999, which amended Schedule 1 of the Films Act 1985. An application for certification as a qualifying British film can only be made after the film is completed.

If the conditions required by the Secretary of State are met a certificate to that effect will be issued by DCMS. It is this certificate that is the necessary evidence that a film has qualifying film status. The certificate from DCMS simply states that it is a qualifying film, tape or disc for the purposes of F2A92/S40A - S43 and F2A97/S48. A copy of the certificate should accompany any claims under those sections, or any tax returns in which a deduction is made for expenditure allocated under ITTOIA/S137 - S140 or any elections under ITTOIA/S143. Details of the certification process can be found in leaflet FB1 ‘Evidence of British Nature of a Film’ available from DCMS or can be found on the DCMS web-site at http://www.culture.gov.uk/creative_industries/film.

An additional requirement for claiming relief was added in FA02 for films completed on or after 17 April 2002, or films that were completed before 1 January 2002 but had not been submitted to DCMS for certification before 17 April 2002. This requirement was that a film should be intended for theatrical release, that is intended for the cinema, not a TV programme or film. This legislation can result in films not qualifying for the special tax relief for British films even though certification has been granted by DCMS ( BIM56110).