FPC50005 - Film Tax Relief: Eligible Expenditure: Introduction

A film production company (FPC) ( FPC10110) that qualifies for Film Tax Relief ( FPC40000) in respect of a film is entitled to claim an additional deduction in computing the profit or loss arising from the separate trade of producing that film.

The additional deduction is based on the amount of core expenditure that is UK expenditure.

The method by which the additional deduction is computed is dealt with at FPC55000. But prior to undertaking that computation it is necessary to determine:

• the extent to which expenditure is core expenditure ( FPC50010), and if it is,
• the extent to which it relates to services or goods ‘used or consumed in the UK’ ( FPC50050).