FPC30020 - Film Production Companies: Losses: Pre-completion periods

FA06/s43

Relief limited to carry forward

The film tax regime introduced by FA06 includes rules which modify the normal loss relief rules for film production companies (FPCs). These modifications include a restriction on the use of losses for accounting periods preceding that in which the film is completed.

Where an FPC has a trading loss for any accounting period preceding that in which the film is completed ( FPC10150) the loss is not available for any form of loss relief (including group relief) except that it may be carried forward to set against future profits of the same trade.