Films that commence principal photography on or after 1
January 2007 will all be taxed according to the new rules in FA06.
Some of those that commenced principal photography before that date
will also fall within the regime.
The FA06 reliefs do
not apply to films that were completed before 1
January.
Such films are taxed according to the previous rules. In
accordance with SI2006/643, which introduced the original cultural
test for British films, where such a film needs to be certified as
British (e.g. for the purposes of F2A92/S42) the test that will
apply depends on when principal photography began;
If, at the time principal photography began, a film was intended
for theatrical release, and if it is certified as British –
either under a co-production agreement or under the second Cultural
Test – then the new provisions in FA06 apply.
If, upon application, the film is refused certification under
the second Cultural Test, then it is taxed instead according to the
old rules. This includes the possibility of Film Tax Relief (FTR)
if the film is British. Where a film needs to be certified as
British for this purpose, the test that will then apply is the
First Cultural Test but without the requirement that the maker of
the film be resident in the EU.
SI1050/2007, which sets out these provisions, makes two other
changes only for overlapping films
