BIM56250 - Film and audio products: methods applying to all master versions: ESCB54

The text of ESCB54 is as follows:

‘Notwithstanding Section 113(2) of Finance Act 2000, master audio tapes or discs shall be deemed to be included in the definitions of Section 68 (2) of the Capital Allowances Act 1990. This ensures that treatment of the expenditure on production of master audio tapes or discs will continue to be treated as expenditure of a revenue nature’.

Following the enactment of CAA01 the legislation in CAA90/S68 was rewritten as F2A92/S40A to F2A92/S40D. The definitions in CAA90/S68 (2) are now found in F2A92/S40A (5). ESCB54 continues to apply as if the reference to Section 68 (2) had been substituted by a reference to Section 40A (5).

For IT years of assessment 2005/06 onwards ITTOIA/S130 and ITTOIA/S132 have reinstated master versions of audio products within the statutory revenue expenditure treatment. However, for CT and for IT years of assessment up to 2004/05, ESCB54 still continues to apply.