Commentary on Sections Overview Overview Section 400: Film partnerships
1125.This section sets out the circumstances in which relief is restricted to 40% of the interest that would otherwise be eligible for relief. It is based on section 75 of FA 2006.
1126.The restriction applies only if the money is invested in a film partnership and secured on an asset or activity of a second partnership, the “investment partnership”, of which the individual is or has been a member. The individual must also be entitled to a lower proportion of the profits of the investment partnership than the proportion of capital that he or she contributed to that partnership.
1127.In relation to the calculation of the latter proportion, subsection (3) provides rules about what constitutes the partnership capital and subsection (4) provides rules for identifying which part of that capital has been contributed by the claimant. In subsection (4) it is made explicit that only amounts that actually form part of the total investment partnership’s capital are taken into account.