BIM56025 - Film and audio products: introduction: rules apply to Cases V & VI

Film trades and businesses chargeable under Schedule D Cases V and VI

The legislation in F2A92/S40A to S43 refers to trades or businesses that consist of or include the exploitation of films or audio products. Usually the legislation is applied to trades assessable under Case I Schedule D, but the rules also apply where, exceptionally, the profits are chargeable under Cases V or VI of Schedule D (see IM140 and BIM80000 respectively).

For IT years of assessment 2005/06 onwards, ITTOIA has abolished the cases of Schedule D, but ITTOIA/S609 to S613 apply the film reliefs in the same way to non-trade businesses as they do to trades.

Therefore, the rules regarding the deduction of expenditure on the production or acquisition of films and audio products also cover deductions in computations to be made in accordance with the principles applied in computing the profits of a trade, but where the business activities do not amount to a trade.